By Millie Turner
The government will miss its net zero target by 2050 if it fails to prioritise its semiconductor industry, the UK boss of US tech giant Cognizant has warned.
Chips, used in most of today’s electronics, are critical in the green transition – from smart metres to windfarms – but are currently in short supply worldwide as a result of surging demand.
UK managing director, Rohit Gupta, has urged for the country to “join forces” with the US and European Union (EU) on an investment strategy for chips, which would boost research and development and eventually production on home turf. Without it, the government may not meet its net zero target.
“It’s not just one thing – there’s a number of things where chips are required which in a direct and indirect way move us towards net zero,” he told City A.M. “My worry is that that may get pushed out a little bit with the whole political climate.
“Our net zero ambition in terms of where we want to be – that will be delayed. I don’t think we will hit that,” he said,adding that support for the chips industry is vital.
“There is still time to catch up. It seems far away but the years will pass by pretty quickly.”
The government has teased the chips industry with a strategy to boost business operations and investment in the UK for some time, despite calls from the sector’s CEOs urging for immediate guidance.
Both the US and the EU already have comprehensive Chip Acts in place to protect their chip supply chains against trade restrictions – prompted by the pandemic and growing geopolitical tensions – through supporting local industry and cutting their reliance on manufacturers overseas.
The UK’s net zero push has already experienced a setback, Gupta explained, with the global semiconductor shortage still seeing orders of electric vehicles delayed into next year. The smart metre rollout has also been struggling, even prior to the pandemic.
Although Gupta expects the shortage to ease by next year, as a global economic downturn stifles demand.
The tech chief suggested that with the lull in consumer demand for electronics, “then maybe that’s the time to put resources towards longer term initiatives… for net zero.
“There’s not a silver bullet to get that back on track. We just need to get through the crisis that we have. Yes, prioritise what we have to do in the short term but keep in mind the medium- and long-term strategies that are in place. Don’t ignore it.”
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