How the UK’s microchip industry is bouncing back after a quarter of a century
Silicon microchips underpin our modern lives. They are at the heart of our smartphones and laptops. They also play critical roles in electric vehicles and renewable energy technology. Today, more than three-quarters of microchips, also known as semiconductors, are produced in Asia. But in the 1990s, chip production was more widely distributed across the globe – and the UK punched above its weight. Scotland’s central belt – the area of highest population density, including Glasgow, Edinburgh and the towns surrounding them – became known as “Silicon Glen”, employing 50,000 people in the electronics industry at its peak. The region exported everything from PCs to Playstation chips. Multinational companies like NEC, Motorola and Texas Instruments operated major facilities there. In the 2000s, the dotcom crash triggered industry-wide consolidation and a shift to lower-cost manufacturing facilities in east Asia. The UK’s domestic capability was almost wiped out. But the UK semiconductor industry is quietly bouncing back. A new wave of companies is focusing on microchips designed for clean energy technology. These chips power electric vehicles and are …