Britain will invest billions of pounds to support the development of semiconductor companies

CTOnews.com January 27, Bloomberg reported that the British government plans to provide funds to British semiconductor companies to help them accelerate their development. A person familiar with the matter said the Treasury had not agreed on an overall figure but it was expected to be in the billions of pounds.

Bloomberg quoted officials familiar with the plan as saying it would include seed money for start-ups, help existing companies scale and new incentives for private venture capital. Ministers will set up a Semiconductors Task Force to co-ordinate public and private support to increase the manufacture of compound semiconductors in the UK over the next three years, they added.

Asked about the report, a UK government spokesman said they would not comment on speculation, stressing only that the country's semiconductor strategy would be announced in due course. The UK government said last month it was exploring national initiatives to expand the domestic chip industry, including the possible establishment of a new agency as part of its plan to promote infrastructure.

CTOnews.com reported that the UK Department for Digital, Culture, Media and Sport (DCMS) said in a statement that the strategy aims to "unlock the full potential of the chip business" and support employment, and will also seek to ensure reliable semiconductor supply.