UK government to fund chipmakers in effort to drive domestic production

The plans aim to shrink the UK's reliance on American semiconductors amid ongoing shortages

The UK government plans to subsidise semiconductor companies in a bid to support domestic chip manufacturing and ward off American giants.

According to a Bloomberg report, the taxpayer funds will include financing for start-ups, help for existing groups and new incentives for private venture capital.

Ministers will also organise a semiconductor task force to coordinate public and private support to drive UK production of compound semiconductors in the next three years, the outlet added.

The Department for Digital, Culture, Media & Sport has been contacted for comment.

Government's past efforts to ramp up UK chip industry

The DCMS announced last month it was exploring national initiatives to boost the British semiconductor industry.

It said a new national institution could be established as part of plans to bolster the infrastructure underpinning the UK's industry through the government's upcoming semiconductor strategy.

The strategy will aim to "unlock the full potential" of British microchip businesses, support jobs and skills to grow the UK's domestic industry and ensure a reliably supply of semiconductors.

It will look at whether better access to prototyping and manufacturing facilities for chip firms is needed to tackle barriers to innovation and grow the industry.

Additionally, it will also cover opportunities to make specialist software tools more available for start-ups and ways to develop cutting-edge packaging processes, the point in the supply chain where chips are prepared for use.

The UK's semiconductor industry has expanded rapidly over the last decade, with global revenue increasing by 95 per cent between 2012 and 2021.

Moreover, former Prime Minister Boris Johnson joined in a last-ditch push for chip designer Arm to list on the London stock exchange over New York in May last year.