The Growth of Semiconductor Manufacturing in the UK: Pragmatic Semiconductor’s Innovative Approach

The semiconductor industry has experienced significant turbulence in recent years, with disruptions to supply chains during the pandemic and geopolitical tensions in Asia, where the majority of the world’s most advanced chips are produced. In response, governments and private companies are investing heavily in domestic semiconductor manufacturing to reduce dependency on foreign suppliers.

Pragmatic Semiconductor, the largest semiconductor manufacturer in the UK, is leading the charge in this new wave of semiconductor manufacturing. The company, which is based in Cambridge, is currently building a big computer chip plant in Durham, formerly a ceramic pipe factory. Inside the vast space, Pragmatic is transforming it into a sophisticated hub for the manufacturing of computer chips.

Pragmatic has already built one production line, and funding of £182m ($230m) announced late last year will fund production lines three and four. However, the company will need much more money to complete its plan to build eight production lines in the old pipe factory.

The semiconductor industry is crucial for various products, from phones and computers to cars and washing machines, all of which rely on the production of computer chips. Pragmatic Semiconductor’s CEO, David Moore, believes that the industry will need multiple types of semiconductors to solve different kinds of problems.

Pragmatic is taking a different approach by making flexible chips, which can be used in wearable technology, clothing authentication, and even in parcel labels to track and trace items. These chips are built on a flexible thin film, which results in chips that are cheaper and faster to manufacture than standard silicon chips.

Despite the advantages of flexible chips, they cannot replace the advanced chips in phones, computers, and other leading tech. However, they offer a cost-effective and quicker alternative for certain applications.

The global shortage of advanced chips in 2021 highlighted the industry’s dependency on a few key suppliers, particularly Taiwan Semiconductor Manufacturing Company (TSMC), which makes 90% of the world’s most advanced semiconductors. Governments are investing billions to create stronger domestic chip industries and reduce dependency on Asian suppliers.

The US Chips Act, which pledged $52bn to boost domestic production of computer chips, and the European Union’s €43bn project are just a few examples of this trend. Smaller-scale investments are also being made in countries like Germany, Belgium, Lithuania, and the Czech Republic.

Analysts predict that new chip plants might be a wasteful duplication, but experts like David Moore believe that more diversification in how semiconductors are made and what they’re used for is required to meet the growing demand for connected devices.

In conclusion, the semiconductor industry is undergoing a significant transformation, with governments and private companies investing heavily in domestic manufacturing to reduce dependency on foreign suppliers. Pragmatic Semiconductor’s innovative approach to making flexible chips offers a cost-effective and quicker alternative for certain applications, but the industry will still need advanced silicon-based computer chips for leading tech. The race to build chip plants in Europe and the US is a positive step towards reducing dependency on Asian suppliers, but there is a risk of duplication and wastefulness across the industry.