The UK (United Kingdom) has joined the European Union’s “Chips Joint Undertaking” as a “participating state” despite exiting the EU. This move highlights the importance of collaboration in the global semiconductor industry, a sector facing critical shortages and geopolitical tensions.
The UK’s contribution of $44 million grants access to a much larger pool of funding – €1.3 billion (around $1.4 billion) – for research and development (R&D) in semiconductor technology. This partnership allows UK organizations to compete for funding alongside their European counterparts.
The Chips Joint Undertaking is part of a broader European initiative, the European Chips Act, launched in 2023. This act aims to bolster Europe’s semiconductor industry and reduce reliance on imports, particularly in light of potential supply chain disruptions caused by geopolitical instability.
The overall budget for the Chips Joint Undertaking is a staggering €11 billion, combining public and private contributions. This significant investment underscores the importance Europe places on becoming a major player in the global semiconductor market.
While the UK is no longer a formal member of the EU, this partnership demonstrates a recognition of the interconnectedness of the semiconductor industry. Collaboration is crucial for fostering innovation and ensuring a stable supply chain for this critical technology.
The success of the UK’s participation in the Chips Joint Undertaking remains to be seen. However, this move signifies a strategic shift towards cooperation despite the political separation from the EU. It will be interesting to observe how this partnership unfolds and contributes to Europe’s overall efforts in the semiconductor industry.
