Kim Hegarty is the director of Linesight
The UK Trade Skills Index shows that the construction and trade industries need 937,000 extra workers by 2032.
With skills from the high-tech industrial sector in demand from the burgeoning life sciences and data centres industries, upskilling for semiconductor projects needs to start quickly.
“The global competition for the key materials needed to build semiconductor plants makes careful supply chain management a key necessity”
The global chip shortage, which began in 2020, has had a severe impact on a number of industries.
Semiconductors are the main components of processor chips, which are in everything from smart phones to electric vehicle batteries and photovoltaic cells.
With its recognised expertise in chip design, the UK has the potential to become a major player in the chip industry.
The first step towards achieving this will be by building the facilities to produce these vital components.
But delivering a facility capable of housing the multimillion-pound technology needed to manufacture millions of chips day in, day out, comes with specific location requirements.
The challenges of building a successful facility
There are several challenges that can present when planning and building a project of this scale.
Access to utilities, particularly energy and water, is important. Semiconductor plants use up to 100 megawatt-hours of power per hour, according to research from McKinsey.
Likewise, a thorough understanding of utilities access and the planning requirements that drive site selection is vital.
Knowing who else is already in the area is just as crucial.
While it might seem counterintuitive to cosy up to competitors, choosing sites that are part of an established industry cluster can help to reduce costs for utilities, as well as allowing improved access to supply chains for components.
When it comes to constructing these facilities, there are important distinctions to note between the different asset types on the market.
Integrated device manufacturers design and manufacture chips for single companies, while foundries produce chips under contract for a variety of businesses and therefore need to be able to adapt to variations in chip design and demand.
The global competition for the key materials needed to build semiconductor plants makes careful supply chain management a key necessity.
Monitoring changes in the global and local markets will allow contractors and clients to identify opportunities to improve the resilience of project budgets and timelines.
Ensuring you have the skilled labour needed to get projects off the ground is not the only challenge for contractors.
Despite the global need for chips, no project is risk averse and factors like volatile material costs and shortages, along with supply chain disruption require careful monitoring.
This is why integrated risk management should be a core proponent of any chip production project.
Developing roadmaps for these major capital expenditure projects to account for possible scenarios is incredibly beneficial.
It is also vital to identify opportunities for futureproofing projects through the integration of clean energy.
With demand for semiconductors set only to grow, the UK has an opportunity to shore up its own supply while fostering a thriving future industry.
The first steps to making it happen are continued government support and gearing up the construction sector to build the best facilities in the right locations.
