British chipmakers warn that a UK crackdown on immigration is hobbling the sector’s ability to compete globally because of increased barriers to hiring foreign talent. Moreover, they expect those roadblocks to persist whoever wins next week’s general election.
The Tory government last year published a strategy for the sector identifying chips as “one of the five technologies of tomorrow” that’s “vital” to making Britain a technology superpower. The need for more domestic production has been brought into focus in recent years after supply chains broke down during Covid-19 lockdowns and rising geopolitical tensions highlighted the dangers of heavy reliance on overseas factories.
The more recent reforms included raising the minimum salaries of workers brought in on skilled worker visas, and making it harder for immigrants to bring in family members. The government also pledged to review visas for overseas graduates of UK universities. In April, electronic engineers, crucial to chip design and manufacturing, were removed from the UK’s shortage occupation list, which affords sought-after foreign professionals an easier and cheaper entry route.
“There’s just loads and loads of red tape,” said Mark Lippett, CEO of Bristol-based XMOS, which makes chips used in audio equipment. The Home Office said its sponsorship system is designed to be easy to use and they have introduced measures to streamline processes for companies seeking to bring in skilled workers.