Develop homegrown microchips, PM urged
British industry leaders frustrated by delays as Apple launches ‘made in America’ factory deal
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The Government’s as yet unpublished plan has been overshadowed by a dispute over Newport Wafer Fab, a chip factory in south Wales.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”.