Trade Association Warns Robust Domestic Chip Market is Essential for the Future of UK Automotive Electronics Industry

TechWorks; the UK Deep Tech Trade Association warns that a robust domestic semiconductor market is essential for the continued success of the automotive electronics industry. In his recent Autumn Statement, the chancellor failed to deliver meaningful support for the UK semiconductor industry, which remains in jeopardy as many industry experts raised concerns about the need for long-term policies to support this vital sector.
Currently, the UK automotive electronics & software systems industry contributes over £100 billion to the economy and provides thousands of jobs across the country. Global demand for in-car electronics continues to rise, especially with the surge in the production of electric and hybrid vehicles and these electronics often account for up to 50% of the cost of vehicle production.
Techworks automotive electronics network (AESIN) represents the UK’s automotive electronics industry. Gunny Dhadyalla AESIN director, commented “We are seeing a massive growth in electronics and software fuelled by an appetite for the next generation of user experience. Everything from user interfaces to connectivity to automated vehicles will create new opportunities for the industry.  The UK has lost ground on having a globally competitive electronics systems supply base.  We must channel our focus on a small number of winning technologies, to become globally competitive.  AESIN has targeted four technology areas where we see massive opportunity including sensor technologies (e.g. LIDAR & RADAR) for automated vehicles, user experience and interfaces, power electronics and vehicle architectures.”
The UK is perfectly placed to capitalise on the growth of this buoyant sector with an established infrastructure and some of the leading businesses and minds in this field but without investment in the UK electronics and software industry and a long-term strategy to establish and reinforce this vital supply chain the UK could lose ground to other global players.
Historically as a country, the UK has failed to invest deeply and for long enough to scale innovations into long-term globally successful organisations with UK roots and significant UK economic contribution.
TechWorks’ CEO Charles Sturman, commented, “The next 20 years will see society transformed by emerging next-gen technologies, all of which are underpinned by semiconductors. The UK semiconductor industry needs a long-term strategy that is beyond the horizon of any single government, and which enjoys cross-party support.
Globally, all developed nations are working to support and grow their national industries. In the UK, we are developing good policies in specific areas, but we need more ambition and momentum across sectors in order to deliver meaningful impact for the UK automotive electronics industry along with many others.
TechWorks is an industry association at the core of the UK deep tech community with an ambition to harness the country’s fantastic engineering and innovation to develop our position as a global technology super-power. The association was formed in 1996 and has led the charge since then to enhance the UK’s position as a leading player in the global Deep Tech ecosystem.

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