“Ten years ago the industry was in an upbeat mood, positive about its future,“ said Derek Boyd, chief executive at NMI.
Is it still as confident in light of the dramatic changes it has experienced over the past decade?
“We’ve seen some big changes in the industry and the UK is now firmly part of an integrated global ecosystem. Domestically, we seen consolidation in the electronics sector with a significant number of mergers and acquisitions –ten years ago ARM, CSR and Wolfson were all independent companies. That’s no longer case.”
While Boyd suggested that it was ‘disappointing’ to see so many companies losing their independence he suggested that these types of acquisitions could actually be beneficial to the UK, bringing additional investment and creating new jobs.
“The cost of product development has soared and only companies with deep pockets are able to provide the necessary funding,” he suggested.
“The UK remains a very attractive location for the electronics business with a strong VC community, a strong science base and a good environment for start-ups,” Boyd added. “We, as a country, are getting better at commercialising research and we’re seeing more companies diversifying into new areas such as power electronics, power management and LEDs.
“We are also seeing a new generation of entrepreneurs – which is reassuring.”
Boyd remains optimistic about the industry’s future. He believes there will be more start-ups many of which will look to exploit new market segments such as artificial intelligence, machine learning, power and automotive technology.
