£1bn backing for UK microchips

ONE billion pounds will be pumped into the British microchip industry to reduce the country’s reliance on semiconductors from China.

The decade-long drive is also designed to bolster the UK as a technological superpower, Rishi Sunak will announce today.

The Prime Minister believes investment in semiconductors, used in electronic devices such as mobile phones and computers, will help ‘build our competitive edge on the global stage’.

It comes amid growing fears about the long-standing dispute between Taiwan – the world’s biggest producer of computer chips – and China over the island’s sovereignty. There is increasing concern across the West that using Chinese technology in communications and surveillance networks will result in foreign data ending up with Beijing’s ruling Communist Party.

‘Our new strategy focuses our efforts on where our strengths lie, in areas like research and design, so we can build our competitive edge on the global stage,’ the Prime Minister will say.

‘By increasing the capabilities and resilience of our world-leading semiconductor industry, we will grow our economy, create new jobs and stay at the forefront of new technological breakthroughs.’

An initial investment of £200million in 2023-25 will be directed towards improving industry access to infrastructure, funding research and development, and facilitating greater international cooperation, the Government said.

Lucy Powell, Labour’s digital spokesman, said: ‘Rather than the £1billion headline, the reality is £200million over the next three years – significantly less ambitious than our competitors.’