Britain commits £35mn to join EU's semiconductor research programme
UK semiconductor firms will have access to grants from Europe
Britain has announced its decision to join the European Union's efforts aimed at developing and manufacturing advanced semiconductors within Europe.
The UK pledged £35 million (€41 million) towards the Chips Joint Undertaking (Chips JU) programme dedicated to semiconductor research.
The Chips JU, initiated under the European Chips Act in November 2023, seeks to fortify the European semiconductor ecosystem and maintain technological leadership by bridging the gap between research, innovation and production.
With an initial EU funding of €1.67 billion, expected to be matched by member states and supplemented by private investments, the Chips JU aims to amass a total budget of €3.3 billion to support semiconductor research and innovation.
Both Britain and the EU are currently striving to secure their domestic semiconductor supply chains, recognising the vulnerabilities exposed during the Covid-19 pandemic due to reliance on global chipmakers predominantly owned by Chinese and US companies.
By participating in the European chips initiative, British semiconductor companies will now have the opportunity to access grants from the larger European fund, providing a significant boost to the UK's semiconductor sector.
"Our membership of the Chips Joint Undertaking will boost Britain's strengths in semiconductor science and research to secure our position in the global chip supply chain," technology minister Saqib Bhatti said.
"This underscores our unwavering commitment to pushing the boundaries of technology and cements our important role in shaping the future of semiconductor technologies around the world."
Dr Giorgia Longobardi, founder and CEO of Cambridge GaN Devices, hailed the UK's participation in the European initiative as a significant step towards achieving breakthroughs in semiconductor technologies essential for addressing societal challenges and advancing national interests.
Semiconductors play a crucial role in everyday devices, fuelling a global competition among countries to attract manufacturers and drive technological advancements.
Governments worldwide have implemented various strategies in recent years to bolster their semiconductor sectors.
China unveiled plans for a $40 billion state-backed investment fund to support its semiconductor industry, while the US and the EU introduced substantial investment programmes - the US Chips Act worth $52 billion and the European Chip Act amounting to €43 billion - to expand chip manufacturing capabilities.
Similar initiatives are underway in countries like South Korea, Taiwan and Japan.
Britain's decision to join the EU semiconductor research programme follows its reentry into the Horizon Europe science programme, a pivotal EU funding scheme for various research and innovation projects, including the semiconductor initiative.
With an overall budget of €95.5 billion, Horizon Europe aims to drive scientific advancements and technological innovation across Europe.
Britain's participation in Horizon Europe was initially hindered by disputes over post-Brexit trade rules. However, thousands of British companies are now eligible for Horizon Europe grants, with notable beneficiaries including Nova Innovation and The Floow.