Business from the UK to the US and EU

A number of British semiconductor manufacturers are considering relocating their businesses to the US or an EU country if the UK government does not soon present a strategy and financial support package to develop the industry in the country, CNBC reported on Monday.

Semiconductors are used in almost all electronic devices: smartphones, computers, electric cars, ventilator machines and space satellites.

"It should make sense for companies like ours to continue to operate and produce here, and if there are more potential economic advantages and government support packages overseas, then relocation is the only sensible business decision," Scott White, head of UK chipmaker Pragmatic Semiconductor, told the channel.

In addition, Welsh-based IQE has previously warned of its intention to consider a decision to relocate the business to the US or the EU if the authorities do not set a strategy in the next six months, CNBC reported.

US President Joe Biden passed the Chips and Science Act in 2022, envisaging $52 billion to boost semiconductor manufacturing in the country. The European Union, for its part, has allocated 43 billion euros to boost the industry in Europe and achieve the goal of producing 20% of all chips in the world by 2030, the channel reports.

According to technology industry executives, the lack of such a strategy for British companies is damaging their competitiveness, the article said.

Bloomberg earlier reported citing officials that the U.K. government would subsidize semiconductor companies to boost the industry and reduce dependence on other countries. Earlier, the British Parliament's Business, Energy and Industrial Strategy Committee criticized the government for not having a strategy for the semiconductor industry.