The UK government plans to spend £1 billion ($1.24bn) on supporting domestic semiconductor development.

British businesses will get £200m between them from 2023 to 2025, with the rest set to be handed out through to the end of 2033.

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– Sebastian Moss

The UK government's National Semiconductor Strategy is significantly smaller than the US Chips Act ($52bn) and the EU's European Chips Act ($46.3bn), as well as subsidies in China, South Korea, and elsewhere.

Given that a single chip fab complex can cost upwards of $10bn, the strategy instead aims to focus on areas that offer "targeted and value for money," such as R&D, design and intellectual property (IP), and compound semiconductors.

Chloe Smith, Secretary of State for Science, Innovation, and Technology, said: "Britain is already a world leader when it comes to researching and designing semiconductor technology – our new strategy will double down on these core strengths to create more skilled jobs, grow our economy, boost our national security and cement the UK’s status as a global science and technology superpower."

This week Prime Minister Rishi Sunak also announced a semiconductor partnership with Japan, as part of the broader Hiroshima Accord pact.

To start, the UK’s Research and Innovation department will work with Japan’s Science and Technology Agency on a joint £2m ($2.5m) investment in 2024, to support fundamental chip technologies.