Reports show that the government is putting UK companies at “significant risk” by not investing in semiconductors.

A new report says the UK should increase its investment in semiconductor chips as international competition intensifies.

Semiconductor shortages have devastated car companies around the world after electronic component factories were forced to close for months during the pandemic.

The lag continues as modern cars rely on these chips to control various systems, including anti-lock braking and satellite navigation.

But the government is overly reliant on other countries for semiconductor manufacturing, exposing UK companies to “significant risk,” according to a report by the Business, Energy and Industrial Strategy Committee.

The government must partner with strategic allies to secure profitable investment in the UK chip industry.

Committee members identified cooperation with the United States under the CHIPS Act and cooperation with Taiwan as potential areas that could open opportunities for the industry.

The CHIPS and Science Act is a US federal law.

The committee said building international partnerships is something that needs to be explored as part of an overdue semiconductor strategy, adding that the government should release the information without delay.

The report also proposes that a single government agency take charge of promoting the UK’s semiconductor industry and ensuring supply security.

Darren Jones, Corporate, Energy and Industrial Strategy Committee. The chairman said: “The government is putting UK companies at significant risk by not taking action to support the semiconductor industry.

“Other countries are investing in the resilience of their semiconductor supply chains, but ministers in the UK can’t even release their semiconductor strategy in time.

“Semiconductors are essential components of today’s technology and infrastructure needed to achieve zero emissions. Strong growth is expected in the industry over the coming decades, giving us the opportunity to capitalize on our strategic advantage in design and low power composite semiconductors.”

The Commission’s report indicates that it is unclear whether the support currently provided by the government is up to what is needed to make a difference. product installation.

The report also talks about supporting an “open factory” in South Wales, allowing any company to manufacture products in its facilities.

Worried about the global semiconductor shortage due to Covid-19 lockdowns, governments around the world, especially in the US and Europe, have poured tens of billions of dollars into semiconductor investments, including the construction of new factories.

Globally, the semiconductor industry is worth over $500 billion and is projected to grow to over $1 trillion by 2030, despite the recent drop in demand.

Complex semiconductors can play an increasing role here. They are critical not only to the core components of automobiles, but also to washing machines and military applications of green technologies.