Lack of chip strategy is ‘act of self harm’, warn MPS
BRITAIN’S failure to draw up a national computer chip strategy is an “act of self harm”, a group of MPS has warned.
The Commons business committee accused ministers of failing to address its recommendations published in November which included encouraging greater collaboration with countries to safeguard supply and to attract investment.
Darren Jones, a Labour MP and chairman of the committee, said: “The longer they wait, the more there’s a lack of clarity. We had evidence from British companies before the committee who say, ‘we’re British, we started here, we want to stay here. But the Americans keep coming over to us and offering us loads of free things’.
“With 40 days until the Budget, the strategy must be published urgently so that sufficient funds can be put behind it and used effectively.”
In its report published today, the committee casts doubt on whether government support would be enough to have any meaningful effect.
Sources have told The Daily Telegraph that about £1bn is expected to be made available to Britain’s chip industry. This compares unfavourably with support by other countries. Joe Biden, the US president, announced a $280bn (£229bn) support package for that country’s semiconductor industry in the Chips Act, passed last year.
Britain’s domestic chip industry has mixed feelings towards increased government support for the sector, split between manufacturers who hope to attract more backing for UK fabrication companies and chip design companies.
Industry sources have called for more investment in supporting design businesses, an area the UK has traditionally nurtured expertise in locations including Cambridge and South Wales.
A DCMS spokesman said: “We are committed to supporting the UK’S vitally important semiconductor industry. The strategy will be published as soon as possible.”