Feature: Semiconductors


According to a letter to the Prime Minister Rishi Sunak in The Times, tech leaders have warned that without a strategy for UK semiconductor operations, the country’s tech sector could be at risk


could be at risk. In the effort to minimise the reliance on Asia for semiconductor supply and with fears of an escalating US-China trade war, onshoring appears to be a way to provide medium-term self-reliance. However, a recent report has suggested that the UK should


move away from onshoring of semiconductor manufacturing, and instead focus efforts on its competitive advantage in chip design, using international alliances to strengthen supply chains. The UK is home to 110 semiconductor design firms, several


Addressing global


semiconductor shortages


By Benoit Wambergue, VP of cloud products strategy, Forterro


T


he global semiconductor shortage, exacerbated by the Covid-19 pandemic, continues to cause chaos for the manufacturing sector. Semiconductors underpin almost every electronic device on the planet and, with the UK amongst the world leaders in chip design,


the shortage could have significant repercussions for its manufacturing businesses, too. According to a letter to the Prime Minister Rishi Sunak in


The Times, tech leaders have warned that without a strategy for UK semiconductor operations, the country’s tech sector


36 June 2023 www.electronicsworld.co.uk


of which are world leaders, making the UK the clear leader in Europe as well as a significant global player. To put this into perspective, the UK only has 23 fabrication plants, which largely produce an older style of chip and mostly for products made in the UK. Taking advantage of the UK’s existing strengths in the


semiconductor chain and working to develop a hub of trusted partners with a shared approach to fill the gaps in that chain could put the UK in an extremely strong position. Investing in cutting-edge semiconductor production requires large capital investment and extensive knowledge and, as they become more advanced, companies will increasingly need to be linked into that trust ‘hub’ of material and equipment suppliers, as well as continuing research and development. Funded by the European pandemic relief fund, Spain has committed $13bn towards new semiconductor factories by 2027, and Samsung is investing $356bn in the next five years to accelerate growth in semiconductors and other technologies.


Securing supply While the future remains uncertain, manufacturers will naturally look for reliable supply chains to avoid further disruption, and this is where onshoring could be beneficial for the wider manufacturing sector. Being able to draw on suppliers at home increases agility across the supply chain, as well as reducing product lead times during manufacture, and often increases the level of trust between businesses and their customers. Whilst onshoring has its advantages, reducing risk from


supply disruptions, minimising transportation time and cost, and leading to closer relations between manufacturer and


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