UK told to put up the cash or risk chip industry

Nicholas Earl

IT IS cheaper to produce semiconductors “anywhere else in the world” compared to the UK, the boss of a fast-growing technology specialist has warned.

Scott White, chief executive of Cambridge-based semiconductor maker Pragmatic, told City A.M. the government must provide more funding to ensure companies in nascent industries have a true pathway to growth and scaling up manufacturing.

He explained that his team was highly passionate about developing products in the UK, but that he needed to ensure the company could capture the maximum economic value for its semiconductor designs as it ramps up production.

White said: “That’s where the government does need to do more because at the moment, it’s effectively far cheaper for us to go build our next fabrication line anywhere else in the world other than the UK – because there are government support programmes in the US, EU, China, Taiwan and pretty much any other country in the world.”

In his view, a “level playing field” with those competitors was essential if the government wanted to grow manufacturing beyond research stages.

His comments follow warnings from industry bosses last year that the UK lacks a coherent semiconductor strategy.

There have been fresh media reports that the government plans to subsidise semiconductor companies in a bid to support domestic chip manufacturing and ward off overseas giants.

The taxpayer funds will include financing for start-ups, help for existing groups and new incentives for private venture capital, according to Bloomberg.

White explained: “If you think about everything you buy in the supermarket that’s in a box or a plastic bag and being able to embed electronics into that packaging, to allow better traceability of that product through its lifecycle. This includes up to the point of disposing the packaging and making sure it’s recycled or reused in the most optimum way.” suspended.

Alongside further financial support for growing companies in key industries, he also called on the government to boost domestic demand for technology.

The firm has completed the disposal of Arden Partners this year and announced last week a plan to offload a Bristol-based personal injury practice too.

The disposals are part of a strategy “to dispose of non-core businesses and focus its insurance practice on corporate insurer clients in the defendant-side market, where six partners have joined the Group in the last year,”the company continued.

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