news Lack of support denting prospects for UK computer chip sector, say MPs | Technology sector

The UK is missing out on a wave of investment and falling behind other countries in the fast-growing semiconductor industry because of a lack of support from the government, MPs

have warned.The government should urgently publish a long-delayed semiconductor strategy, and also look to create partnerships with allies to try to ensure the UK remains part of

the semiconductor supply chain, according to a report published on Monday by MPs on parliament's business committee.Manufacturers used well over a trillion chips in 2021 to power

devices ranging from vacuum cleaners to cars to advanced artificial intelligence computers. In the long term the need for advanced semiconductors in particular is expected to grow,

and shortages of semiconductors since the start of the coronavirus pandemic have exposed the vulnerabilities of economies if supply is shut off.However, the UK industry is heavily

relying on companies in other countries, with little prospect of a turnaround unless the government improves support, the MPs said. They said the government should consider

supporting the creation of new “fabs” (the industry name for semiconductor factories).“It is not clear to us that the support currently offered by government is at anything

like the scale which is needed to make a real difference, or in line with a clear strategy from ministers,” the report said.The government initially said it would publish a

semiconductor strategy in “autumn 2022”, but has so far declined to say when this will occur.“The government is putting UK plc at significant risk by failing to take action

in support of the semiconductor industry,” said Darren Jones, the Labor MP who chairs the committee. “Other countries are investing in the resilience of their semiconductor

supply chains yet ministers in the UK can't even publish their semiconductor strategy on time.”It comes after the government this month told the owner of the UK's largest fab

that it must sell it to protect national security. Nexperia, a Dutch company owned by the Chinese conglomerate Wingtech, is planning a last-ditch appeal to try to overturn the

decision.The decision to intervene was welcomed by some observers, who argued that letting the takeover remain in place may leave the UK vulnerable to Chinese government

interference. However, the company's staff association and management have expressed shock, outrage and fears for their jobs.Nexperia said it welcomed the MPs' commitment to

consider the circumstances around the government's intervention, although this will not take place until well after any appeal by the company is decided.A Nexperia spokesperson