UK ambition to be 'tech superpower' out of reach without investment in semiconductor market

Today’s World Semiconductor Trade Statistics (WSTS) show strong projections for growth in the global semiconductor market of 16% in 2024, reaching an estimated market valuation of $611bn, and 12.5% in 2025, reaching a value of $687bn.

Ben Bilsland, partner and head of technology industry at the leading audit, tax and consulting firm RSM UK, said: 'The semiconductor industry is a fast-growing market, crucial to the prosperity of developed nations vying for market share in the technology arms race. While the UK’s manufacturing capacity accounts for a fraction globally, the country has a great opportunity to tap into the market through its advanced design capabilities. The rise in artificial intelligence brings into focus the need for cutting-edge chips. Playing to its strengths as a designer and innovator will enable the UK to compete at a global level.

'Developing innovative technologies is enormously expensive and requires a skilled workforce. But without support from the government, the UK’s ambition to become an undisputed tech superpower will remain out of reach. UK tech will welcome clarity in election pledges around innovation reliefs, deeper resources for research and development, and clear plans to bolster education and skills that support the sector.

'The UK is not alone in an overreliance on semiconductors from overseas and there is an ever-present risk of shocks to supply chains. The shortage of supply during the early stages of the pandemic highlighted just how much the country relies on the chips in many aspects of daily life, from computers to cars to kettles. Semiconductors will become even more important and there is a need for UK manufacturers to actively monitor and potentially diversify their supply chains.'