Does the UK have good electronics companies right now? (Well, there's Dialog.)
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.
That's an unfair characterisation. When it comes to cars UK is known for:-
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.
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.