General Election is a critical moment in shaping the future of UK industry

The newly elected officials will present their strategies for these essential industries, and TechWorks, a body in deeptech and semiconductor sectors, stresses the importance of ensuring the UK remains a competitive player globally.

TechWorks, representing 270 companies and 20,000 employees across six sectors – Microelectronic and Photonic System Design, Semiconductor Manufacturing, Automotive Electronics, IoT Cybersecurity, AI, and Power Electronics – is prepared to collaborate with the next government. The aim is to build on the progress made by the Department for Science Innovation and Technology to develop a sustainable plan supporting the UK’s Semiconductor and Deep Tech industries.

Charles Sturman, CEO of TechWorks, comments: "The outcome of the general election will significantly influence the direction of the UK's tech landscape. The UK, like many countries, finds itself in a difficult position today with strained budgets, lower productivity, and a significant trade deficit. However, we continue to demonstrate incredible innovation in science and technology through our universities and startups. This innovation can fuel growth and prosperity if we invest now to build productive business and supply chains, securing both our economic future and our National Security."

The semiconductor industry is central to advancements in AI, quantum computing, cryptocurrency, and achieving net zero goals, with vast economic and geopolitical significance. Valued at $600 billion in 2024, the global semiconductor industry is projected to surpass $1 trillion by 2030, with the wider supply chain, including gas, chemicals, and equipment suppliers, contributing substantially. The UK hosts several successful chip companies and globally relevant suppliers. However, it currently provides the lowest level of support for the semiconductor industry among the G7, despite the considerable economic benefits these industries bring.

For instance, the US company NVIDIA, established in the mid-90s, generated £63 billion in revenue last year from AI-related chip sales. This figure is equivalent to 46% of the NHS primary care budget, with their corporate taxes potentially contributing up to £10 billion to the UK economy. Cultivating such 'unicorn' companies within the UK is achievable, but it requires a long-term strategy and robust public-private partnerships.

Ahead of the election, TechWorks calls for:

• Cabinet collaboration: working with industry at cabinet level to develop policies that extend beyond the current parliament, aiming to unlock the UK’s full potential
• Manufacturing growth: supporting market growth by revising Capex support and or R&D Tax Credits to allow successful chip companies to grow with the markets they serve
• Strategic funding: create schemes for matched funding or lead investment in strategic areas to grow UK chip companies, upgrade UK facilities and develop UK based supply chains to promote global leadership where the UK has strengths
• Domestic incentives: encourage domestic demand and procurement to strengthen UK supply chains and increase national resilience
• Access to capital: improve access to long-term capital through government-led initiatives, developing investors with an appetite for long term tech investment, fostering growth from small to large enterprises without foreign acquisition
• Skills investment: focused investment in our skills infrastructure is needed, from secondary schools through vocational training and higher education, to create a sustainable pipeline of future UK talent pipeline that we desperately need to support the deeptech sector

Sturman adds: "This election is a reset opportunity for the UK. The UK deeptech industry is ready to engage with the new government to ensure we harness our world-class innovation to create, scale and keep world-class technology industry in the UK. Investing in our future to remain globally competitive and truly become a technology superpower.