Semiconductors Manufacturing

Lord Fox Excerpts

Monday 18th September 2023 Lords Chamber

Asked by

[Lord Fox]

To ask His Majesty’s Government what progress they have made towards engagement with the semiconductors manufacturing sector concerning funding to support future manufacturing in the United Kingdom, as set out in the Semiconductor Strategy, published on 19 May.

[The Parliamentary Under-Secretary of State, Department for Science, Innovation and Technology (Viscount Camrose) (Con)]

The national semiconductor strategy sets out the Government’s plan to build on the UK’s strengths to grow our sector, increase our resilience and protect our security. We will also announce plans by the autumn to further support the competitiveness of the semiconductor manufacturing sector, which is critical to the UK tech ecosystem and our national security. We have engaged, and continue to engage extensively, with industry. The Government’s new semiconductor advisory panel met last week to inform our approach.

[Lord Fox (LD)]

I thank the Minister for his Answer. I think the concern lies around the rhetoric that has surrounded the May announcement, which very much focused on research and design while coupling that to resilience. As the Minister knows, good design companies and good research get bought and leave the country, and they do not necessarily contribute to resilience, whereas manufacturing does. As the Minister said, we in this country are home to some very innovative, lower-cost, niche manufacturers, but for those investors to have the confidence to further those companies, a strategy needs to be set out. Can the Minister assure your Lordships’ House that his department is putting maximum pressure on the Chancellor so that, when his Autumn Statement comes out, a proper manufacturing strategy for semiconductors in this country will be forthcoming?

[Viscount Camrose (Con)]

The noble Lord raises, as ever, an interesting point, but to build an advanced silicon fab would, first of all, cost tens of billions of pounds. It would run into not only costs of operation but substantial risks of uncompetitive yields and, as we have seen several times historically, shifts in demand for semiconductors. I remind the House that, although 40% of the value chain of semiconductors is represented by manufacturing, 30% is represented by design. It makes sense that our strategy should build on the country’s strengths, particularly in design.

EU Programmes

Lord Fox Excerpts

Thursday 7th September 2023 Lords Chamber

[Lord Fox (LD)]

This should be a question, not a speech.

[Baroness Lawlor (Con)]

I say to the Minister that there are strings attached. Will he reassure the House and ask the Government not to allow the pressure from the Windsor Framework to inhibit our freedom to pursue scientific research, and get a cast-iron guarantee that it will not be used politically against us?

--- Later in debate ---

[Viscount Camrose (Con)]

First, as I was obliged to explain to the House at the time, I was unable to comment on ongoing negotiations for fear of prejudicing their outcome. The initial position of the EU was that we had to pay for the entirety of 2023, despite the fact that it was already March by the time this agreement was made, there were no mechanisms in the place for clawback, which I will come to in a moment, and it was all or nothing. I am pleased to say that thanks to the negotiations we have reached a deal that works for both sides.

On the clawback scheme, the preferred outcome is not to require a clawback. In common with every previous Horizon programme, we have gained more from the programme than we have put in, and we have every reason to believe that that will be the case, but there is always a risk that, because we are entering this particular Horizon programme late and many of the bids and activities will already have been allocated to different parties, we will not on this occasion be able to make as much money back for our institutions as we put in. In that instance, the clawback mechanism negotiated by our team mitigates that risk somewhat for any really significant disparity.

[Lord Fox (LD)]

My Lords, without overegging the pudding, the whole point of Horizon is that there is international co-operation. There are issues with visas because we are going from the free movement of people to a visa-based system, so that is fundamental to how this works. However, my question is about Copernicus. We have not heard much today about that, so will the Minister tell your Lordships’ House where we are on that and how the deal reflects on that?

[Viscount Camrose (Con)]

I will come back to the question of visas, and I take the point. I am pleased to say that we are also reassociating with Copernicus. It is such an important programme for the earth observation sector. Geospatial is in my portfolio as a Minister. I am a great believer in the value that it can bring. What particularly pleases and excites me about the association with Copernicus is access to the EU’s very comprehensive dataset that could help to kick-start our work and the work done in the EU. I am extremely positive about that.

Emergency Communications

Lord Fox Excerpts

Monday 26th June 2023 Lords Chamber

[Viscount Camrose (Con)]

To my knowledge, there was no COBRA meeting—I imagine because the disaster recovery system kicked in and was able to meet the emergency requirements.

[Lord Fox (LD)]

My Lords, I am sure that specific recommendations will come out of the inquiry, but there should also be systematic ones that apply to other areas of national infrastructure. This is not the only single strand of infrastructure that is put in the hands of one private sector company that keeps people’s services alive. Will the Minister undertake that those systematic lessons are applied across the piece and across government?

[Viscount Camrose (Con)]

I do not want to prejudge the outcome of the inquiries. If they determine that there are systemic issues that need to be addressed, then we will put in place a plan to address them.

Medical Research Charities

Lord Fox Excerpts

Wednesday 21st June 2023 Lords Chamber

[Viscount Camrose (Con)]

I thank the noble Lord for that question. The first thing to remind the House is that it was not a decision of the UK Government not to be associated with the Horizon programme. Following the trade and co-operation agreement—of which association to Horizon was a part—that association was withdrawn from the United Kingdom. Beyond that, as I say, I cannot comment on the forces at work behind individual negotiation points, but I recognise the frustration and concern that result from the lengthy period of negotiations.

[Lord Fox (LD)]

My Lords, on 19 June, UKRI and DSIT launched a search for ideas that were “bold and ambitious”—a phrase the Minister used just now—and

“transformative ideas for moonshots across the research and innovation landscape”.

That would apparently be delivered by the Pioneer programme in the event that we do not sign up to Horizon. Can the Minister confirm how much will be invested in those moonshot programmes? Can he also confirm that in the event that we sign up to Horizon, those projects will still be funded?

[Viscount Camrose (Con)]

The funding for the Pioneer programme would end up being the same as the funding that would be made available were we to join the Horizon programme, as is our preference. As to individual elements within the Pioneer programme, I cannot comment on their size right now because the programme continues to be based on huge input, which we greatly welcome, from all aspects of the sector.