Microelectronics (Hansard, 26 July 1978)

§ Mr. Varley

I am pleased to announce that my Department is to introduce a, microelectronics industry support programme (MISP) to which an allocation of £70 million over five years has been made. This is an important new scheme which will give help to British industry to develop and exploit the latest technologies in the field of microelectronics which are becoming increasingly basic to the electronic equipment industry and to other branches of manufacture.

The programme will assist the development and manufacture of those microelectronic devices where a close engineering interaction between user and supplier is needed—"specials". Companies will also be encouraged to manufacture selected standard products with the objectives of increasing exports and import substitution. These aims are in line with the recommendations on a strategy for the industry recently published by the NEDC's electronic components sector working party.

754W

Assistance under the programme will be given on a selective basis to viable projects which contribute to the strategy of strengthening the United Kingdom microelectronics industry as a whole and which require such assistance for their realisation. The programme will support firms in the United Kingdom engaged in the manufacture of microelectronic devices and also those supplying specialised equipment, materials or services to the microelectronics industry.

Assistance will be available in the following forms:

(a) Under the Science and Technology Act 1965:—

(i) cost-shared contracts, normally of up to 50 per cent., for research projects;
(ii) grants of up to 25 per cent., or in certain circumstances cost-shared contracts of up to 50 per cent., for development of products and processes;

(b) Under section 8 of the Industry Act, 1972:

grants of up to 25 per cent. for investment in production plant, equipment and building.

The programme will operate as from today and formal guidance for applicants will be published shortly.