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National Semiconductor Strategy

The UK Government's National Semiconductor Strategy appears to outline a comprehensive vision to position the country as a global leader in semiconductor technologies. The strategy recognises the critical role of semiconductors in various sectors, their impact on national security, and the need for supply chain resilience. Supply chain resilience is incredibly important considering the highly interconnected and complex nature of the semiconductor supply chain, which involves at least 12 distinct states across the world, including the UK, US, and Taiwan.

The strategy's objectives include growing the domestic sector, mitigating supply chain disruptions, and protecting national security. The UK’s vision is to continue to focus on its domestic strengths in research and development (R&D), design and IP, and compound semiconductors, rather than attempting to go toe-to-toe with the US or the EU in enhancing chip-production capabilities.

However, the successful implementation of the strategy will not only depend on whether the UK’s funding commitments are sufficient (£1 billion over the next decade – to be compared with the US’s commitment of $52 billion and the EU’s commitment of EU 43 billion), but also on effective collaboration between government, industry, and academia, and the continuous adaptation to evolving technological and geopolitical landscapes.

Considering the above, businesses should:

  • align their strategies to maximise the opportunities presented by the strategy, including through continued investment in R&D which may involve participating in incubator programmes or partnering with educational institutions, as well as applying for as much of the available funding as possible;
  • conduct an IP audit to ensure that all IP is adequately provided for and protected;invest in employee training and talent acquisition, including exploring avenues for attracting international talent such as through the GREAT Talent Campaign and visa schemes, alongside nurturing domestic expertise; and ensure appropriate cyber security measures are in place to safeguard your assets and data, which is even more important following the increased focus on hardware security and potential regulatory changes under the National Security and Investment Act.

To read the official Government national semiconductor strategy policy, click here.

If your business needs advice on how best to position itself following the National Semiconductor Strategy, please contact Sarah Kenshall today. 

These notes have been prepared for the purpose of articles only. They should not be regarded as a substitute for taking legal advice.

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