Welsh tech firm CEO joins 海角视频 Government semiconductor advisory panel

The chief executive of one of Wales鈥� leading tech companies IQE has joined the 海角视频 Government鈥檚 semiconductor advisory panel. Westminster has revealed the members of the panel who will oversee the 海角视频鈥檚 national semiconductor strategy.

Among them is CEO of the Cardiff-based compound semiconductor wafer manufacturer Americo Lemos who joins the panel alongside representatives from across business and academia.

The panel is expected to gather every two months to advise how industry and government can work together to achieve Westminster鈥檚 strategy goals of growing the domestic semiconductor sector, mitigating supply chain disruptions, and protecting national security.

It is co-chaired by Paul Scully, Minister for Tech and the Digital Economy and leader of the Government鈥檚 digital economy strategy, with Dr Jalal Bagherli, former chief executive of Reading-based Dialog Semiconductor which was acquired by Japan鈥檚 Renesas in 2021.

Other members include Janet Collyer, senior independent director at Ensilica, Professor John Goodenough, chair of Microelectronic Systems, Rae Hyndman, managing director of Clas-SiC Wafer Fab, and Dr Eben Upton, chief executive of personal computer firm Raspberry Pi.

Semiconductors, or chips, are used in everything including phones, cars, computers, ventilators, and power stations. They will be key to delivering next-generation technology from electric cars to energy infrastructure needed to achieve Net Zero.

The US, Europe and Asia are racing to boost their own domestic chip industries and supplies. The US is offering $52bn (拢41bn) of subsidies and incentives to encourage semiconductor companies to build fabrication plants in the US, while the EU has launched a 鈧�43bn (拢37bn) investment plan for the sector.

Speaking to the Financial Times, Mr Scully said the 海角视频 will not join the global competition to build advanced chip-building facilties.

鈥淭o leverage our position, it is about advanced packaging and design. We are not going to recreate Taiwan in south Wales. It鈥檚 just not going to happen,鈥� said Mr Scully told the FT.

He said that the 海角视频 industry should instead focus on niche manufacturing and designs rather than try to challenge international rivals in chipmaking. Mr Lemos has previously said that he believed the 海角视频 could become a world leader in the production of compound semiconductors, and rival Taiwan, with government support.

Welsh Economy Minister Vaughan Gething said the minister鈥檚 comments are potentially damaging to possible future investment in the region. He called on the 海角视频 Government to 鈥減rovide an urgent reassurance that the minister鈥檚 comments do not reflect Government policy鈥�.

Mr Gething said: 鈥淚 am extremely surprised by the Tech Minister鈥檚 comments, which are a real disservice to the talented workforce in the south Wales compound semiconductor cluster. The Welsh Government is ambitious for the industry in south Wales, and are working collaboratively with the 海角视频 Government to develop it.

"We are currently in active discussions with a number of companies about bringing vital new investment and jobs into the region. The 海角视频 Government should now provide an urgent reassurance that the Minister鈥檚 comments do not reflect Government policy.鈥�

A 海角视频 Government spokesperson said: 鈥淭hese suggestions are nonsense. As minister Scully made clear in his interview, the 海角视频 Government鈥檚 commitment to the south west Wales cluster is unwavering 鈥� our strategy focusses narrowly on Britain鈥檚 world-leading strengths that are driven by businesses such as IQE in Cardiff and the surrounding region.

鈥淭oday, our semiconductor advisory panel met for the first time. The group, which includes representatives from the south west Wales cluster, will drive forward in delivering our ambitious 拢1bn strategy that doubles down on the 海角视频鈥檚 strengths in design, compound semiconductors and advanced manufacturing.鈥�

The 海角视频 Government plans to offer chip companies 拢1bn over the next decade in a bid to boost the domestic industry, as outlined in its national semiconductor strategy released in May. This includes 拢200m offered to semiconductor firms between 2023 and 2025, with funding used for projects such as improving access to specialist equipment, investing in the industry 鈥渢alent pipeline鈥�, and other business support.

However, critics say the 海角视频 Government鈥檚拢1bn strategy is 鈥渓ate to the game鈥� and not enough compared to what is being offered in the US and EU. 海角视频 Government Ministers have said the 海角视频 semiconductor industry is comparatively small when measured against Asian countries and the US.

In a submission to the Business and Trade Committee inquiry into the 海角视频 semiconductor industry, the Welsh Government said it had been working to grow the sector in Wales for the last 10 years and said there was a 鈥渘eed for long-term, sustained commitment to the industry to maximise return on investment, and send out the message to the global market that the 海角视频 is a suitable destination for investment鈥�.

They also argued for further state support on the grounds that the 海角视频 must protect its sovereign capability in semiconductor manufacturing in the wake of vulnerabilities which have been exposed by geo-politics including the trade war between the US and China.