UK unveils $1.2B chip strategy to advance chip leadership

LONDON

The British government on Friday announced its commitment to investing a substantial amount of up to £1 billion ($1.2 billion) in the semiconductor sector over the next decade.

The 20-year national semiconductor strategy came as British Prime Minister Rishi Sunak was attending the G7 Leaders' Summit in Japan.

The investment aims to double down on design, research and advanced chip leadership, according to the government.

It is expected to improve access to chip infrastructure, enable increased research and development activities, and facilitate international collaborations, with up to £200 million will be allocated over the years 2023 and 2025.

Prior to the summit, the UK and Japan made a commitment to collaborate in the semiconductor sector to enhance research and development efforts and supply chain capabilities.

"Semiconductors underpin the devices we use every day and will be crucial to advancing the technologies of tomorrow," Sunak said in a statement.

"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," he added.

The UK and Japan made a joint commitment to establish a robust semiconductor partnership, with an investment of up to £2 million in early-stage semiconductor research next year.

The British government has a target of becoming a "global science and technology superpower."