Building a Future Talent Pipeline: The key to a strong and resilient semiconductor ecosystem in the UK
This campaign week, organised and led by techUK, is all about showcasing the transformational technologies at the heart of UK innovation. Undoubtedly, transformational technologies such as Digitalisation, AI, Automation and Clean Energy will enable countries to address global challenges like climate change and – importantly – they also have the potential to drive incredible growth. For the UK, the potential rewards are huge. As an advanced economy, we are adept at creating and growing highly competitive and successful companies that design, make and sell products and services in all these technological fields.
It is self-evident that none of the transformational technologies can exist without the semiconductor components from which the products are built. Not just in processing and memory but, in sensing, power conversion, radio communications, optical processing and displays. Therefore, the importance of the semiconductor industry as a critical foundational ‘horizontal’ technology, which underpin all emerging and transformational technologies, cannot be overstated.
In the UK, semiconductors currently contribute an estimated $12 billion (£9.8 billion) in annual revenues to our economy, and we have a well-established global reputation for excellence in semiconductor design and innovation, with world-leading companies and research institutions.
Globally in 2024, the semiconductor industry delivered 800 billion chips, generating over $630 billion per annum in revenues with forward growth forecasted between 9~15% CAGR. It has already created massive wealth in the value of its most successful companies at a colossal $7.4 trillion, with so much more to come. Therefore, it is not an exaggeration to say that on the shoulders of the semiconductor industry rests almost everything else. Indeed, semiconductors are the single largest global growth industry. Consequently, employment in the semiconductor workforce is expected to grow.
For instance, it was reported that in 2023 the European semiconductor industry employed approximately 382,200 people and the projected growth in employment has been estimated at 5.0 % CAGR by 2030, potentially adding 155,900 new jobs by 2030. However, at the same time we know that the number of graduates entering the semiconductor industry is not forecast to increase.
Therein lies the problem. A recent report from the European Chips Skills Academy stated that the current talent gap in the EU semiconductor industry is expected to widen annually to an estimated shortage of over 75,000 positions by 2030.
In the UK, the MTC (2022) noted that there are significant opportunities in ground-breaking areas such as compound semiconductors (CS) but to fully benefit, the UK needs to engage its young people and provide them with clear learning paths. The Semiconductor Sector Study (HM Government, 2024) found that 90% of respondents reported a shortage of key technical skills. The same study reported that annual inflows of Higher Education graduates entering the semiconductor sector are estimated at 870 graduates (UK and international domiciled students from UK universities), with half of these entrants from Electrical and Electronic Engineering (EEE) courses. Long-term international student retention remains uncertain, raising concerns about the longevity and sustainability of inflows.
Along with others, the UK Electronics Skills Foundation (UKESF) has long advocated that the only viable way for our semiconductor industry to grow sustainably is to increase the number of UK students studying Electronics at degree level. Also, that for manufacturing, we need more young people following vocational education pathways into the sector.
We are pleased that this need has been acknowledged by the Government and that Lord Vallance recently announced a significant investment (of £4.75M) for semiconductor skills.
With this investment, the UKESF has announced the launch of the Semiconductor: Skills, Talent and Education Programme (STEP). This programme will begin to build a robust pipeline of skills will provide crucial support enabling more young people to pursue Electronics Engineering careers, and help to underpin the long-term success of the UK semiconductor sector.
As with the implementation of any strategy to address a talent shortage, it is a long-term process, primarily because cultivating a new generation of graduates takes considerable time and starts with schools. First and foremost, there is a need raise awareness about Electronics and generate interest in semiconductor careers among young students. Semiconductor: STEP will consist of four connected projects, from schools’ outreach through to post-graduate training.
Over the coming 12 months, the UKESF will work with a number of collaborators, including the CSA Catapult, TechWorks, Aston University, Sheffield University, STFC and the Institute of Physics, along with 30 UKESF partner universities, to deliver the projects and maximise impact. The programme will enable the UKESF’s to scale-up and build on their existing portfolio of successful resources and events, which includes Electronics Everywhere and Girls into Electronics.
techUK – Unleashing UK Tech and Innovation
The UK is home to emerging technologies that have the power to revolutionise entire industries. From quantum to semiconductors; from gaming to the New Space Economy, they all have the unique opportunity to help prepare for what comes next.
techUK members lead the development of these technologies. Together we are working with Government and other stakeholders to address tech innovation priorities and build an innovation ecosystem that will benefit people, society, economy and the planet - and unleash the UK as a global leader in tech and innovation.
For more information, or to get in touch, please visit our Innovation Hub and click ‘contact us’.
