The industry has been stunned by the Government’s failure to support the building of Plastic Logic’s $100m semiconductor production facility in the UK rather than Germany.
Despite investing over £1.5m of public money in the Cambridge-based firm’s R&D activities, the necessary support was not available in the UK when the firm planned its first production facility.
“This is a great concern to us and should be for others too,” Derek Boyd, chief executive of the NMI told Electronics Weekly.
“Where the UK can compete on R&D, skills & clusters it cannot compete on the level of subsidies that other regions have,” said Boyd.
Electronics Weekly understands that Plastic Logic considered the UK when looking for the best European location to carry out their high-tech manufacturing. Wales made it on to Plastic Logic’s top five list but were disadvantaged because Wales could not provide a competitive greenfield site and attractive grant.
“Are we doing enough to support, grow and retain them beyond the early stages… it appears not,” said Boyd.
Boyd plans to question the Government on the issue. “It is unclear to us how the UK will effectively compete in the long-term if we do not fully support businesses in an holistic sense, ie. R&D, design and manufacturing,” said Boyd.
“The case of Plastic Logic is especially interesting as it has the potential to be truly disruptive and has the potential to create a schism in electronics manufacturing. It is on this basis that we will be contacting government to help us understand their considered strategy for the UK more fully,” said Boyd.
Boyd believes that European policy has created a playing field which is not level and UK appears to be at a significant disadvantage. “We believe the UK Government should be encouraging and supporting high-tech manufacturing; the cases of Plastic Logic and MED are two excellent examples where the UK is leading the field in new, high-tech areas but policy outforces further deployment,” said Boyd.
The case of Plastic Logic is especially interesting as it has the potential to be a truly disruptive technology with great market potential. “It is on this basis that we will be contacting government to help us understand their considered strategy for the UK more fully,” said Boyd.