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21 February 2023PatentsSarah Speight

Spike in global semiconductor patents sees UK lagging

Research shows near 60% rise in microchip patents | UK files less than 0.3%, prompting concerns over lack of support for innovation.

A record number of global patents for semiconductors were filed in the past year, according to new research by law firm Mathys & Squire.

More than 69,000 semiconductor patents were filed between September 2021 and September 2022, data from the World Intellectual Property Organization ( WIPO) shows.

This represents a 59% increase in five years and a 9% increase on the previous year, driven by intense competition and R&D in this sector.

For example, US firms Intel and AMD have long vied to dominate the market by designing ever faster, higher-capacity computer processors.

Meanwhile, companies such as Arm, based in Cambridge, UK, have concentrated semiconductor design on mobile devices.

Semiconductors, also known as integrated circuits or microchips, are considered the ‘brains’ of modern electronics. Developments in the technology over the past 50 years have made electronic devices smaller, faster, and more reliable.

The global semiconductor industry is forecast to be worth $1 trillion by the end of this decade, climbing from $590 billion in 2021, according to data used in the report from McKinsey.

China takes lion’s share

In terms of geographic concentration, some 55% (37,865) of these patents were Chinese in origin.

According to the report, China has placed a major focus on domestic semiconductor production in a bid to reduce dependence on western technologies. This follows the Biden administration’s ban on the export of advanced semiconductors from China last year.

The largest individual filer in 2021-22 was Taiwan Semiconductor Manufacturing Company ( TSMC), which filed 4,793 patents—representing 7% of all patents worldwide.

In the US, 18,223—26% of the total—semiconductor patents were filed in this period. The top US filer was California-based Applied Materials, with 209 patents, followed by SanDisk (50 patents) and IBM (49 patents).

However, the UK is lagging behind, accounting for just 179 patents (0.26% of the global total) filed in this period.

Growth areas

Roughly 70% of the overall growth of the semiconductor industry is predicted to be driven by three industries: automotive, computation and data storage, and wireless, according to McKinsey.

By 2030, the automotive industry is predicted to form 15% of global demand for the technology—up from 8% in 2021.

The ‘internet of things’ is another growth area in which semiconductors are vital, including wearable technology, smart homes and ‘smart cities’.

Geopolitical tensions, resulting in trade barriers for key technologies, have prompted governments to secure their access to semiconductors.

Last year, the US Congress passed the CHIPS and Science Act, which allocated $280 billion to promote the research and manufacture of semiconductors in the US.

Meanwhile, the European Union is currently considering a European Chips Act in order to boost Europe’s semiconductor industry.

“As the growth of domestic semiconductor industries becomes a feature of more countries’ industrial policies, we can expect new patent filings to continue as businesses seek to protect and monetise their technological advances,” said Mathys & Squire’s report.

Edd Cavanna, managing associate at the firm, said: “Governments are increasingly concerned about the fragility of global supply chains and are taking steps to promote semiconductor research and production domestically.”

He added that new technologies to emerge from this “global technology race” will be protected by patents “that are likely to be fiercely enforced”.

“Global powers such as the US, China and the EU are competing to be leaders in semiconductor technology. That says it all regarding their importance for the future of the economy.”

Regarding the UK’s position, Cavanna added: “The UK government may wish to consider whether current funding structures provide enough support to research and development in this vital field.”

In separate research, Asian companies continue to top the global innovation system, according to Clarivate’s 2023 “Top 100 Global Innovators” list.

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