The Daily Telegraph

Develop homegrown microchips, PM urged

British industry leaders frustrated by delays as Apple launches ‘made in America’ factory deal

- By Matthew Field

RISHI SUNAK has been called on to bring forward plans to make semiconduc­tors on home turf after Tim Cook revealed Apple’s intentions for “made in America” iphone microchips to be built in Arizona.

The Apple chief executive met with President Joe Biden and executives from TSMC, Taiwan’s biggest chipmaker, at a new plant in Arizona on Tuesday to hail plans to boost US manufactur­ing.

Mr Cook said: “Soon, many of these chips can be stamped ‘Made in America’. The opening of TSMC’S plant in Arizona marks a new era of advanced manufactur­ing in the US.”

British industry leaders have been agitating for a long-delayed semiconduc­tor strategy to be published to boost the domestic sector for silicon chips and secure investment.

Last month, MPS called for the developmen­t of a new chip factory in South Wales as part of the Government’s semiconduc­tor strategy and fresh efforts to woo foreign investment. Darren Jones, chairman of the Commons business select committee, said: “If the United Kingdom is going to make the most of investment in allied countries we have to make the case for the added value Britain can offer.

“Internatio­nal trade ministers and officials need to be making that case urgently otherwise we’ll end up as a mere customer of companies in other countries whilst British business and workers miss out.”

Simon Thomas, co-founder of graphene electronic­s company Paragraf, added: “This is another indication of how important it is for the Government to get its house in order immediatel­y.”

Mr Thomas said Apple had “onshored” its chip production in response to global supply chain uncertaint­y. Its production has been hit by lockdowns in China and geopolitic­al tensions.

He added: “The UK semiconduc­tor industry is facing the same uncertaint­y exacerbate­d by an absence of Government leadership, it’s time for the UK to publish its semiconduc­tor strategy and allow the sector to flourish.”

The Government’s as yet unpublishe­d plan has been overshadow­ed by a dispute over Newport Wafer Fab, a chip factory in south Wales. The factory was bought by Chinese-owned Nexperia, but ministers blocked the deal.

Nexperia plans to appeal against the decision and denies posing a national security risk. Staff have warned that the decision endangers hundreds of jobs.

Industry figures have called for an “open” factory, which can build hightech chips for companies in Britain, to be developed in Newport.

Alex Stewart, co-founder of chip industry group the Bessemer Society, said: “An open foundry would be important for UK PLC.

“There is an opportunit­y to cater to areas where the UK can produce chips internally from an indigenous supply chain, such as in compound or power semiconduc­tors.”

MPS urged the Government to encourage the world’s biggest semiconduc­tor companies to come and invest in Britain, mirroring the US Chips and Science Act, which has provided $52bn (£43bn) for the sector.

The UK has lagged behind as Taiwan, China, the US and Europe have invested billions of pounds into domestic chipmaking.

Taiwanese chipmaker TSMC said it will boost US investment to $40bn and bring its most advanced silicon technology to the country by 2026. The move represents a victory for Washington to bring home its chip supply chain.

The Government has said it continues to “develop a new semiconduc­tor strategy which will grow the sector further and make sure our supply chains remain resilient”.

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