Russ Shaw’s Tech Week Diary: When the chips are down
London Tech Week – the showcase of all things innovative – is back. Each day this week, Tech London Advocates and Global Tech Advocates boss Russ Shaw CBE will write for us reflecting on the jamboree. Here’s day three.
During Day 3 of London Tech Week, we heard from experts at the centre of an issue that underpins all our digital lives.
Semiconductors are used in everything from the mobile phones in your pocket, to the datacentres powering your Zoom calls and Netflix binges, to the next generation of electric vehicles. The bad news is there are not enough to go round. This is hampering the production of new electronic devices, the building of new infrastructure and the rollout of new digital services.
One country that punches well above its weight in the global semiconductor industry is Taiwan, and I was delighted to join TLA Taiwan’s event with experts discussing the key reasons behind the current shortage and how to map a way forward.
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We heard from Terry Tsao, Global Chief Marketing Officer and President of Taiwan, SEMI (a global semiconductor & microelectronics design & manufacturing industry association) who provided a great and succinct overview of the global market. Like many industries, the semiconductor industry has been disrupted by the Covid pandemic as workers were taken ill or forced to isolate. However, it has also seen unparalleled demand following the pandemic as more and more of our lives moved online, and the demand for technologies to support the ‘new normal’ sky-rocketed.
He told us that the semiconductor industry has now grown to a $551 billion dollar industry which has become a competing ground for nations with burgeoning digital industries. Countries like the US and UK have historically had a strong grounding in chip design while companies like Taiwan, China, Japan and South Korea have increased in importance in recent years, specialising in areas such as manufacturing, equipment and materials
This has put the Taiwanese semiconductor industry at the centre of a tug of war between competing nations vying for influence. Jason Hsu from Taiwan Mt Jade Technology and Science Association also highlighted the geopolitical tensions arising from chip shortages as the technology has become integral to plans for more sophisticated national defence, cybersecurity and satellite capabilities.
In the UK we have also seen the government intervene in plans for the takeover of UK’s ARM by US Nvidia as well as Newport Wafer Fab by Chinese-owned Nexperia. This shows how important these businesses now are to the economy, digital sovereignty and national security.
The global semiconductor industry is one which is close to my heart – I sat on the board of a global semiconductor business for many years – but the recent chip shortage has shown how this important area of technology now impacts on all of our lives.
The UK is seen as a global hub for innovation and London recently maintained its crown as the UK capital’s startup ecosystem worth $142.7bn, according to Startup Genome.
However, to maintain this momentum we need to build closer relationships with key global industries such as semiconductor production and keep a watchful eye on the technology and talent we nurture at home.
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