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Semiconductor Devices: China

Question for Department for Digital, Culture, Media and Sport

UIN HL1784, tabled on 7 July 2021

To ask Her Majesty's Government what assessment they have made of the dependence of UK manufacturers on China for imports of (1) semiconductors, and (2) semiconductor devices; and what assessment they have made of links between Chinese-owned technology firms operating in the UK and China’s Military-Civil Fusion Strategy.

Answered on

19 July 2021

HMG recognises the importance of semiconductor technology to key UK industries, and the wider digital ecosystem. Supply chains for semiconductors are incredibly complex, spanning a large number of countries. China has a limited share of the global semiconductor export market, and is the world’s largest importer of semiconductors.

The UK Government has outlined its concerns that advanced dual-use technology and knowledge may be diverted to assist Chinese military programmes. As an open economy, we welcome foreign trade and investment, including from China, where it supports UK growth and jobs.

HMG will not accept investments which compromise our national security, and all investment must meet stringent legal and regulatory requirements to protect the UK’s national interest. The National Security and Investment Act 2021, due to come into force later this year, will modernise and strengthen our national security investment screening powers.