From Chips to Ships: Onshore Microchip Manufacturing 

The UK semiconductor industry is undergoing a seismic shift. No longer content to rely solely on overseas production, the country is making a strategic move to strengthen domestic microchip manufacturing. This push is not just about economic growth; it’s a matter of national security, resilience, and future-proofing the UK’s role in global technology supply chains.

Why the UK Semiconductor Industry Matters

Microchips are the unsung heroes of modern life. They power everything from smartphones and electric vehicles to hospital equipment and defence systems. As recent global events exposed the fragility of international supply chains, the UK government has recognised the urgent need to bolster local capability.

In 2023, the UK unveiled a £1 billion National Semiconductor Strategy, aimed at supporting R&D, attracting investment, and expanding the homegrown chip ecosystem over the next decade. While this figure may pale in comparison to the tens of billions pledged by the US and EU, it signals a serious intent to reclaim a slice of the global semiconductor market.

More than just funding innovation, the strategy calls for the creation of facilities that can design and fabricate chips domestically. This isn’t just about new factories; it’s about building a full supply chain that includes the highly specialised components and engineering expertise needed to support these complex operations.

Building a Chip Fab: What It Takes

Constructing a microchip manufacturing plant is not as simple as throwing up walls and plugging in machines. These facilities, often referred to as fabs, are among the most complex manufacturing environments on the planet. They demand ultra-clean rooms, vibration-free floors, and the ability to maintain near-sterile conditions around the clock.

To achieve this, the construction and outfitting of fabs requires a combination of advanced civil engineering, mechanical systems, and bespoke manufacturing equipment. Everything must be engineered to incredibly tight tolerances. From the air filtration systems to the silicon wafer handlers, precision and cleanliness are non-negotiable. (Source: BBC Tech – Inside a Chip Factory)

This is where precision engineering comes in. Behind every successful fab is a suite of custom-built components and structures manufactured to exacting standards — the kind of standards companies like PRV Engineering are known for.

Precision Engineering’s Role in the Chip Supply Chain

Although PRV doesn’t manufacture microchips, its services are vital to the infrastructure that enables chip production. High-spec machining and fabrication are essential in producing:

• Custom machine frames and enclosures for chipmaking equipment
• Components for cleanroom HVAC and filtration systems
• Chemical handling enclosures and safety systems
• Tooling for wafer transport and robotic assembly

These aren’t off-the-shelf parts. They require large-format machining, specialist alloys, and a commitment to dimensional accuracy that goes beyond industry norms.

Read More: SEMI.org – Supporting Supply Chain Manufacturing

With decades of experience in aerospace, defence, and high-spec fabrication, PRV Engineering is well-positioned to support the UK semiconductor industry as it expands. The capabilities required to build rocket parts or military-grade components are the same ones needed to supply the next generation of chip fabs.

A National and Strategic Priority

Semiconductor manufacturing is about more than just tech. For governments and alliances like NATO, it’s a strategic asset. Chips are foundational to defence systems, communications, and infrastructure. Without a reliable supply, national readiness is at risk.

The UK’s involvement in NATO discussions on microchip sovereignty underscores how critical this issue has become. By encouraging domestic production and reducing dependence on volatile global markets, Britain is aligning its industrial goals with national security objectives. (Source: Politico Europe – NATO Allies & Chip Supply)

Why Now?

The combination of global chip shortages, rising tensions in East Asia, and the digitisation of virtually every aspect of life has created a perfect storm. Britain has both the engineering talent and the industrial base to rise to the occasion, but it requires collaboration between manufacturers, engineers, government, and academia.

Companies like PRV can lead the charge in supporting the hardware behind the chips, even if they’re not directly involved in chip design. The future of the UK semiconductor industry depends on an ecosystem where each player understands their role and delivers to world-class standards.

Large Format Machining: The Backbone of Modern Heavy Industry

Final Thoughts on the UK semiconductor industry

From satellites to smartphones, from defence systems to electric vehicles, semiconductors are at the heart of everything. The UK’s investment in its own chip manufacturing capability is a step toward resilience, independence, and industrial leadership. And behind the scenes, precision engineering firms will be there – machining, fabricating, and innovating the components that bring fabs to life. Learn about large format machining at PRV.