The All-Party Parliamentary Group for Semiconductors: The Strategic Foundation of UK Growth and Resilience
- Feb 2
- 2 min read
Today, the All Party Parliamentary Group for Semiconductors hosts a reception in the House of Commons, bringing together parliamentarians, industry leaders and academia to showcase some of the most advanced semiconductor technologies being developed in the UK.
The event also marks the launch of a new growth paper from the APPG, focused on the critical role semiconductor technologies play in underpinning the UK’s Modern Industrial Strategy. From Advanced Manufacturing and Defence, to Digital and Technologies, Clean Energy and Life Sciences, semiconductors are not simply another sector. They are the enabling foundation on which all these strategic priorities depend.
The paper has been compiled by the Expert Advisory Board to the APPG, drawing on expertise from across the UK semiconductor ecosystem. It reflects contributions from the largest semiconductor manufacturers operating in the UK, representation from innovative SMEs, and strong involvement from the country’s leading academic semiconductor institutions. The conclusion is clear. Semiconductor technology is fundamental to delivering the UK’s growth ambitions, and a strong domestic semiconductor industry has the power to create wealth, strengthen the economy and accelerate long term national growth.
Globally, semiconductors are one of the most research and development intensive industries, reinvesting around 15 percent of revenues into innovation. The sector generates highly skilled and well paid long term employment, contributes around twice the national average gross value added per employee, and supports almost six additional jobs across upstream and downstream supply chains. Few industries combine this level of innovation intensity with such a broad and lasting economic impact.
Yet compared with other leading economies, the level of funding committed by the UK Government to date has been modest, despite semiconductor technology being essential to all other frontier technologies set out in the Digital and Technology sector plan. This makes it vital that the UK Semiconductor Strategy is focused on strengthening areas where the UK already has global expertise. In particular, compound and other advanced semiconductor technologies, chip design and intellectual property, and research, development and innovation across these domains.
The APPG welcomes the initiatives announced so far by Government, including measures that reflect recommendations previously made by the APPG. However, the pace and scale of ambition must increase. This growth paper reinforces existing proposals and sets out further recommendations to ensure the UK semiconductor industry can be even more impactful in driving economic growth and strategic capability.
A strong UK semiconductor industry is not only essential for productivity and prosperity. In an increasingly uncertain and unpredictable world, it is also central to the UK’s global resilience, technological sovereignty and national security.
