New case report highlights the need for regionally responsive semiconductor policy
29th July 2025
A new case study published by the Welsh Economy Research Unit at Cardiff University, as part of the CSconnected Strength in Places Fund (SIPF) programme, funded by UKRI, underscores the importance of regionally informed policymaking in shaping the future of the UK’s semiconductor industry.
The report, titled “Regional Governance and the Semiconductor Industry: The Case for More Contextualised and Responsive Policymaking”, explores the governance challenges facing the UK’s semiconductor sector and calls for a more collaborative, place-based approach to industrial strategy.
The UK semiconductor industry is a complex and multi-faceted ecosystem, made up of geographically dispersed clusters such as the South Wales compound semiconductor cluster. These regional ecosystems are home to deep-rooted expertise in local supply chains, workforce development, innovation, and economic growth. However, the report finds that national policy has often been developed in isolation from these regional realities. A dispersal of power away from London toward regional industrial clusters may enable more effective and more responsive policymaking.
Howard Rupprecht, Managing Director, at CSconnected commented:
“A shift towards multilevel governance, empowered regional actors, and collaborative networks is essential for the UK’s semiconductor growth. Regional clusters are innovation ecosystems with deep insight into local supply chains, skills needs, and growth barriers. we need to be able to unlock their full potential to shape the future of the industry.”
The case study calls for a rebalancing of power from central government towards regional ecosystems, enabling more responsive and context-aware decision-making. It also calls for a greater role for non-state actors in shaping industrial policy, particularly in high-tech sectors like semiconductors, where local knowledge and collaboration are key to success.
Dr Mark Lang, Research Associate at the Welsh Economy Research Unit comments:
“Evidence demonstrates that collaborative networks and regionally and locally responsive institutional structures positively influence innovation, competitiveness, and economic development. As the UK takes forward its new industrial strategy, the significance of place-based policy ecosystems - founded on partnerships among universities, businesses, and local, regional, and national governments - will be essential in supporting the continued growth of industries such as semiconductors.”
As the UK looks to strengthen its position in the global semiconductor market, the findings offer a timely reminder that innovation and growth are most effective when they are shaped by the unique strengths and needs of local regions. This is a pivotal time for the UK semiconductor industry, as the government seeks to implement its National Semiconductor Strategy and attract long-term investment in critical technologies.
Dr. Wyn Meredith, Chair of CSconnected comments:
“This research reinforces what we see every day across the CSconnected cluster, that regional partnerships are not just delivery vehicles, but strategic assets in their own right, “Empowering these ecosystems will be essential to unlocking the UK’s full potential in the global semiconductor landscape.”
The full case study is available to download here.
Notes to editors:
Contact
Camille Colombier, Marketing Manager
Nina Stevens, Communications Coordinator
comms@csconnected.com
About CSconnected
CSconnected is the world’s first compound semiconductor cluster, located in South Wales. Supported by the Strength in Places Fund (UK Research and Innovation) and Cardiff Capital Region, the cluster unites leading companies, research institutions, and government partners to drive innovation, economic growth, and global leadership in semiconductor technology.
