A single smartphone contains over 10 billion semiconductor
transistors. Alongside phones and laptops, transistors (or more
broadly, integrated circuits or “chips”) are increasingly
appearing in other products, from TVs, to cars, to fridges, as they
get “smarter”. Of course, demand for chips is also
rapidly growing for datacentres to enable artificial intelligence
(AI) capabilities. Not to mention other kinds of semiconductor
devices, such as power semiconductor devices (increasingly
important for the green energy transition as we electrify more of
our transport and other aspects of our lives), and light-emitting
devices such as LEDs and lasers (which find applications in
communications, displays, and energy efficient lighting
systems).
However, the increasing demand, and increasing complexity of
chip designs (in accordance with Moore’s Law), has meant that a
correspondingly complex, and highly integrated, supply chain has
evolved across multiple countries (on multiple continents) to
fulfil it.
Chip designers, including “fabless” chip companies
such as Cambridge-based Arm who do not themselves do any manufacturing,
produce proprietary designs using specialised software. These are
then provided to manufacturers, or foundries, who manufacture the
chips according to those designs. Well over half of the world’s
chips are manufactured by a single company: the Taiwan
Semiconductor Manufacturing Company (TSMC). For the most
advanced chips, TSMC and others rely on the Dutch company ASML, who
produce the only extreme ultraviolet lithography machines that are
capable of etching the necessary structures onto silicon at
resolutions below 5 nm.
On top of the highly specialised and integrated companies
mentioned above, there are the companies that produce and develop
the chip design software itself, as well as the manufacturers and
providers of the chemicals and materials needed for the fabrication
processes.
For obvious reasons, this complex and international network of
companies and suppliers, which enables technology that is
fundamental to our modern lives, has led many governments to take
steps to encourage more domestic semiconductor production; for
example the CHIPS and Science Act in the USA, and the European
Chips Act in the European Union. Indeed, many members of the
general public became acutely aware of the importance (and the
potential vulnerabilities) of this network during the global chip
shortage, largely caused by the COVID-19 pandemic, that led to
delays in deliveries of computers and other devices at a time when
demand was high due to many people transitioning to working from
home.
For the UK’s part, a recent statement from the government
identified that semiconductor companies are worth £10 billion
to the UK economy. Fabless Arm are probably the best-known British
company in this area, and hosted a meeting of representatives from
the G7’s Semiconductors Point of Contact Group at their
Cambridge headquarters earlier this year to discuss increasing
supply chain resilience. Arm undoubtedly form an integral part of
the global semiconductor industry, however a number of smaller
UK-based companies have been able to carve out their own
specialised semiconductor manufacturing processes as well.
One such company, with its head office in Cambridge, is Pragmatic
Semiconductor, who design and manufacture flexible integrated
circuits with applications including tracking reusable packaging,
and biometric security. Pragmatic have developed a low-cost,
flexible alternative to silicon, and this year they opened the
UK’s first 300 mm semiconductor wafer production line near
Durham.
According to Pragmatic CTO Richard Price, the Durham site (which
is in addition to an existing fab in Sedgefield) will enable the
company to develop its “Fab-in-a-Box” solution, with the
ultimate aim of bringing local and sustainable manufacturing of
Pragmatic’s indium gallium zinc oxide-based flexible wafers, to
their customers around the world. At the same time, Pragmatic is
creating highly skilled jobs and internships at their UK
locations.
Companies like Pragmatic are fulfilling the government’s
ambitions to bring more semiconductor manufacturing back to the UK.
They will be hoping that others will follow, providing employment
opportunities and generating economic growth, while also helping
the UK to grow its part in the global supply chain.
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