Tech world needs a TSMC competitor.
They're mostly known for building cars that catch fire and having some of the worse and siller audiophile companies that sell you special gold-plated power cables to make your MP3s sound warmer.
Running Europe's most productive car plant[1].
Building the world's fastest cars since 1983[2].
Being the base for most of the Formula 1 constructors[3].
When it comes to electronics innovation even ignoring companies like ARM and Imagination the UK has a large military electronics manufacturing base.
I don't think that current government is likely to do anything to challenge TSMC but to reduce all that to "gold-plated power cables" suggests that you're not really paying attention.
1. https://uk.nissannews.com/en-GB/releases/release-11576-what-...
2. https://en.wikipedia.org/wiki/Land_speed_record
3. https://en.wikipedia.org/wiki/List_of_Formula_One_constructo...
And some of the Formula 1 teams have other arms (McLaren being one).
2. A semiconductor manufacturer needs to be based in a region with a substantial semiconductor supply chain to be successful, and for the UK to develop such a supply chain, it needs a broad-based shift that makes it less-social-democratic/more-capital-friendly, i.e. a more performance oriented economy.
This is only true if you do it wrong. Read "How Asia Works" to find out how SK and Japan built good nearly-state-owned companies through export discipline.
https://www.econlib.org/library/Enc1/JapanandtheMythofMITI.h...
The article notes much more foundational properties of the booming Japanese economy, like a smaller portion of private sector output being taxed to support the public sector, as more likely causes of its growth.