Microchip autarky not the solution to UK’s China woes
12 January 2023
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In the Media
Energy and Environment
Andy Mayer writes for CapX
13 January 2023
Housing and Planning
Matthew Lesh writes in City AM
IEA Head of Public Policy, Matthew Lesh has argued against the UK adopting a microchip production plan in City AM.
Matthew wrote:
“Geostrategic concerns about China and Covid-related shortages have drawn the attention of policymakers to this topic. The Biden Administration has signed a $52bn law to encourage domestic production and, in an unprecedented step, banned US companies from supplying chips to Chinese companies. The European Union is also pursuing a Chips Act, making €11bn available for research and development and aiming to double European chip production.
“The Covid-era shortage of chips is likely to turn into a glut, particularly as new US and EU capacity comes onto the scene with large subsidies. This will mean that British manufacturers who use microchips in their production lines will benefit from lower input costs. Thank you, American taxpayers.
“More broadly, we need to get out of the mindset that the UK must produce everything it consumes. This is not a progressive policy. It reveals an isolationist, closed mindset.”
Matthew’s full piece can be read here.
Matthew wrote:
“Geostrategic concerns about China and Covid-related shortages have drawn the attention of policymakers to this topic. The Biden Administration has signed a $52bn law to encourage domestic production and, in an unprecedented step, banned US companies from supplying chips to Chinese companies. The European Union is also pursuing a Chips Act, making €11bn available for research and development and aiming to double European chip production.
“The Covid-era shortage of chips is likely to turn into a glut, particularly as new US and EU capacity comes onto the scene with large subsidies. This will mean that British manufacturers who use microchips in their production lines will benefit from lower input costs. Thank you, American taxpayers.
“More broadly, we need to get out of the mindset that the UK must produce everything it consumes. This is not a progressive policy. It reveals an isolationist, closed mindset.”
Matthew’s full piece can be read here.
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