UK’s £1bn chip scheme ‘unimportant’, chiefs warn

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The UK is committing £1 billion to boosting the domestic semiconductor industry over the next decade, in a plan industry leaders have described as “insignificant” compared to other countries.

The investment represents a fraction of what other governments have pledged to the sector after pandemic-era shortages upended global supply chains and underscored the world’s reliance on Asia for chips used in everything from mobile phones to laptops and other home electronics.

The US and the European Union have in recent months pledged $50bn (£40bn) and €43bn (£37bn) respectively to stimulate manufacturing.

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What happened overnight

Wall Street stocks rose after more companies reported better-than-expected earnings, while yields rose after a Federal Reserve official warned that the end of rate hikes may not come as soon as Wall Street had hoped.

The S&P 500 rose 39.28 points, or 0.94%, at 4,198.05, adding to a rally from the previous day as hopes rose further that the US government could avoid a catastrophic default on its debt.

The Dow Jones Industrial Average rose 115.14 points, or 0.34%, to 33,535.91. The Nasdaq Composite added 188.27 points, or 1.51 pieces, at 12,688.84 points.

The yield on the 10-year Treasury rose to 3.64% from 3.57% late Wednesday.

The two-year yield, which moves further based on the Fed’s forecasts, rose to 4.25% from 4.16%.

Meanwhile, Asian stocks fell on Friday morning, dragged down by Chinese stocks and Hong Kong on concerns about a faltering recovery in the world’s second-largest economy, although Japan’s Nikkei index hit a near 33-year high.

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.20 percent, but was set to gain 0.19 percent for the week.

Chinese stocks fell 0.61 percent, while Hong Kong’s Hang Seng index fell as much as 1.8 percent, dragged down by technology stocks after Alibaba Group Holdings Limited reported a 2 percent rise in quarterly revenue, less than expected.

The week’s data confirmed that the Chinese economy lost momentum at the start of the second quarter, raising concerns about a shaky post-COVID-19 recovery.

Although Japan’s Nikkei index continued its rally, rising to its highest levels since August 1990, during the country’s so-called bubble era.

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