Semiconductors Manufacturing

Debate between Lord Alton of Liverpool and Viscount Camrose

Monday 18th September 2023 Lords Chamber

[Viscount Camrose (Con)]

Indeed I can, and I recognise the importance of the question around clarity between these various arms of government. The ownership of the semiconductor strategy sits squarely with DSIT. There is a range of Acts—to do with export controls and protection of investment from states seen to be hostile to us—that of course come under other departments, but overall ownership must sit, and continues to sit, within DSIT.

[Lord Alton of Liverpool (CB)]

My Lords, is the Minister aware that some 90% of all advanced semiconductors are produced in Taiwan and that 60% of all semiconductors are produced in Taiwan, mostly by one company? Given the urgency that has arisen out of the hostile acts taking place in the South China Sea, can the Minister tell us what we are doing to bolster supply chain resilience and security? Can he tell the House the current position on the future of Newport Wafer Fab, given that a Chinese company attempted to buy it?

[Viscount Camrose (Con)]

I am of course aware of the overwhelming market position of TSMC in Taiwan. It is a manufacturing foundry for semiconductors, but that is the only slot in the supply chain that it occupies. Having a foundry by itself is nothing without the vast, complex, integrated global supply chain of all other companies. On the second part of the noble Lord’s question, any threat to peace and stability in the strait of Taiwan is a deeply serious concern for the Government. We are looking at all scenarios and contingency planning in preparation for any disruption to that.