London Tech Week day 5: Semiconductors must become a UK strategic priority
If London is serious about shaping the next era of technological progress, we must treat semiconductors as vital national infrastructure, writes Russ Shaw on day five of his London Tech Week diary
It’s the last day of a brilliant week at London Tech Week. Last but by no means least, it was time to look at one of the most critical, yet often overlooked, foundations of the tech economy – semiconductors.
At the Royal Society, the Semi Impact Forum brought this topic into focus, drawing together voices from across the chip supply chain to consider the UK’s place in a rapidly shifting global landscape.
Throughout the week, we’ve celebrated AI breakthroughs, frontier innovation and international collaboration. But none of that is possible without the chips that power it all.
Semiconductors are no longer background infrastructure. They are the geopolitical and economic battleground of the 21st century. To maintain the UK’s edge in deeptech, national security, and industrial resilience, it’s vital that the government has a plan to safeguard supply and invest in the areas of the industry where there is potential to be world leading.
A new semiconductor landscape
The Semi Impact Forum’s agenda reflected a rapidly shifting global picture, from TSMC’s $100 billion investment in the US to new chip alliances across Taiwan, the EU and the UK.
A highlight from the Forum was a session with Colley Huang from Digitimes and Professor Konrad Young on UK–Europe–Taiwan cooperation in the chip supply chain, alongside a standout panel on women in semiconductors featuring Janet Collyer, ShaoLan Hsueh, Laura Foster and Suzanne Oliver. These discussions coincided with the launch of the SemiGateway initiative by Semi Impact Ventures and GTA Semiconductor, reinforcing the Forum’s focus on leadership, resilience and cross-border innovation.
While the Forum focused on Taiwan’s role in global chip supply and the UK’s place in a new semiconductor order, developments like CoWoS (Chip on Water on Substrate) advanced packaging – at the centre of the US-China AI race – highlight how critical specialised chip innovations are to staying competitive.
Taiwan currently produces 50 per cent of the world’s semiconductors, while the US makes just 12 per cent. By 2030, China wants to own 25 per cent of global production, and the potential for conflict in the Taiwan Strait casts a shadow over global chip access. Any disruption to Taiwan’s semiconductor output would have far-reaching consequences for the global tech economy, highly damaging for the UK’s ambitions in AI, aerospace and advanced manufacturing.
For the UK, the most significant barriers to building chip capability are cost and availability. London’s position as a research and policy hub must now be matched with serious industrial intent.
That’s why the UK Semiconductor Strategy and the proposed National Semiconductor Centre are fundamental infrastructure for tech-led future growth.
The UK’s opportunity for chip sovereignty
Published by the previous government in 2023, the UK Semiconductor Strategy was a welcome first step. What’s needed now however is delivery at pace and scale.
Despite a thriving tech ecosystem that has grown 11 times since 2014, semiconductors remain a critical vulnerability. London is home to nearly 2,600 AI companies and 13 universities offering AI degrees, yet it remains overly reliant on overseas supply chains and investment to power its fastest-growing sector.
With global leadership in R&D, IP and chip design, the UK is well placed to lead on the design of compound semiconductors, AI-optimised chip architectures and next-gen packaging.
London specifically, with its power to convene international partners and investors, can play a central role, particularly in deepening collaboration with Taiwan and supporting homegrown deeptech talent.
Semiconductor sovereignty isn’t about making every chip – it’s about ensuring the UK has secure access in the event of global supply disruption.
Why this matters now
Evidently, semiconductors are fundamental to the UK’s technological and economic ambitions. They sit at the core of AI, defence systems, climate tech and life sciences. As global demand surges, the UK cannot afford to rely solely on external supply.
During London Tech Week – from Jensen Huang, CEO of Nvidia, at the opening to the Semi Impact Forum at the close – it is clear that awareness is no longer the issue. Now comes the crucial next phase: scaling fabrication, upskilling talent and coordinating efforts across government, academia and industry.
With 269,700 engineers in London, a strong deeptech investor base and globally recognised universities, the base ingredients are here. What’s missing is the Michelin-star recipe.
If London is serious about shaping the next era of technological progress, then an approach where chips are treated as national infrastructure will be vital to these efforts.
Russ Shaw CBE is the founder of Tech London Advocates & Global Tech Advocates