British ministers were criticized on Friday for continuing to delay a long-awaited strategy to support the semiconductor industry by a committee of MPs.
The government aims to publish a plan to develop the UK chip sector by autumn 2022, according to a report by the business, energy and industrial strategy committee.
However, the release has continued to be pushed back, fueling widespread concern in the tech industry that the UK is falling behind rival countries in boosting growth in key sectors.
The delay is also a factor in deliberations at Japan’s SoftBank over whether to list Cambridge-based chip company Arm in the U.K., as well as the U.S., according to people close to the process.
On Friday, MPs on the committee said delaying the semiconductor strategy further was an “act of national self-harm”.
A blueprint to ensure the security of the chip supply chain must be published urgently, the committee adds, or the development of Britain’s chip manufacturing sector will be put at risk.
In a report in November, the committee’s recommendations included that the UK do better co-operation with its allies to maintain supplies and secure inward investment. But MPs cast doubt on whether government support for the industry is “enough to have a meaningful impact”.
Committee chairman and Labor MP Darren Jones said the government was hiding “behind its failure to publish a semiconductor strategy because it did not fully respond to our practical recommendations”.
The blueprint is expected to set out the outcome of the sector review to improve the resilience and security of the UK’s supply chain and drive innovation.
The committee noted that the US Chips Act provides $52 billion to subsidize US semiconductors, while the EU has set aside €43bn and Japan has its own multibillion-dollar plan.
Jones added: “Countries around the world have realized the importance of securing the semiconductor supply chain for the future, why not? While others are racing ahead, plowing billions to set up fabs or industrial support, we are not at the starting line.
The report by MPs follows a letter sent to the prime minister in January from technology industry executives calling for a coordinated and comprehensive semiconductor strategy “as a matter of urgency”.
The signatories include Hermann Hauser, director of Amadeus Capital Partners and co-founder of Acorn Computers, where he helped spin off Arm.
The letter warns that the UK’s status as a leading technology ecosystem is at risk as the US, EU and China move too quickly to invest in silicon research and chip plant construction.
He said: “The technology and manufacturing sectors have waited more than two years for the promised strategy, and confidence in the government’s ability to address the importance of these industries continues to diminish month by month without action.”
DCMS said: “We are committed to supporting the UK’s vital semiconductor industry. Our strategy will address the recommendations identified by the committee, including opportunities to grow the sector and ensure we have a resilient supply chain.
“The strategy will be published as soon as possible.”