The UK government has launched a £10 million fund to support companies working on the next generation of semiconductors. Tech Minister Kanishka Narayan said the money will help British businesses take their chip technologies from laboratories into commercial use.
The Minister said: “There is immense potential in the UK semiconductors sector. By investing in its growth, we will build on our country’s strengths, setting ourselves apart in a highly competitive market to unlock new skilled jobs at home and boost our economy.”
The Department for Science, Innovation and Technology expects up to 40 companies to benefit.
These companies are building the chips that power phones, cars, satellites and medical devices. The government said the investment will strengthen national security while also making the country more attractive for global investment. Officials believe the sector will grow by 75% by 2030, giving Britain more weight in international markets worth hundreds of billions of pounds.
Narayan announced the funding at the Microelectronics UK Conference. The event brings together representatives from government and technology companies to discuss how semiconductors are shaping economies. Ministers described the chips as essential to both economic growth and the security of critical infrastructure.
Which Companies Are In Line For The Funding?
Paragraf Limited, based in Cambridgeshire, is among the companies receiving support. The business specialises in graphene technology and produces energy-efficient semiconductor devices. These could make phone batteries last longer and lower energy use in cars, aircraft and defence systems.
Silicon Microgravity Limited is also set to benefit. It is building navigation devices small enough to fit into a matchbox, which can work without satellite signals. They could be used in fitness trackers, smartwatches and industrial robots. Ministers said this technology would give the UK independence from overseas navigation systems.
The fund will open access to specialist clean facilities, technical guidance, and mentoring. These resources are designed to help British firms turn their designs into commercial products more quickly. The initiative builds on research strengths already established in Cambridge, Durham, and Newport, where companies such as Pragmatic, Vishay and KLA are active in flexible electronics and advanced manufacturing.
The country’s largest technology company, Arm, is also seen as proof of what Britain can achieve in chip design. Based in Cambridge, it is a recognised leader in this field and plays a strong role in advancing new semiconductor concepts. Iain Mauchline, Head of Semiconductors, Innovate UK, said: “This funding being delivered by Innovate UK (through the Technology Missions Fund and DSIT) is for diverse projects, all developing cutting-edge semiconductor innovations that are fundamental for the UK and our frontier technology areas.
“We’re pleased to provide support for these innovative companies who are using semiconductors as the key enabling technology to make a difference across a vast range of industries.”
How Are Universities Contributing To This Work?
Research is playing a major part in the UK’s semiconductor push. The University of Sheffield secured £7 million earlier this year to install new equipment at the National Epitaxy Facility. Funded through the Engineering and Physical Sciences Council, the Molecular Beam Epitaxy system will use artificial intelligence to speed up the discovery of new semiconductor materials.
The Sheffield facility works with the universities of Cambridge and UCL, supporting more than 30 research-intensive universities and businesses across Britain. The new system will allow scientists to mix semiconductors with superconductors to design new kinds of devices. It will also help create more sustainable chips using earth-abundant materials like zinc, aluminium and nitrogen.
How Big Is The Market For Semiconductors?
The global market for semiconductors is worth £900 billion, according to figures from the University of Sheffield. These chips power everything from LED lighting and smartphones to advanced quantum computing. A single breakthrough can open entire new markets. For example, the discovery of Gallium Nitride helped create the £100 billion LED lighting market.
The government believes the £10 million investment will help British firms win more ground in this global market. It is also expected to generate skilled jobs and attract international investment. Ministers said the announcement ties into the government’s economic growth mission through advanced manufacturing and clean energy.
Narayan said:”There is immense potential in the UK semiconductors sector. By investing in its growth, we will build on our country’s strengths, setting ourselves apart in a highly competitive market to unlock new skilled jobs at home and boost our economy.”
Both government and university leaders see semiconductors as more than components in consumer electronics. They are the backbone of secure communications, defence technology and renewable energy systems. With investment split between commercial projects and research, Britain is positioning itself to compete in a market that innovates when it comes to modern tech.
Narayan said: “We’re backing Britain’s businesses with the support they need to thrive, helping turn world-class research into major advancements such as more efficient mobile phones and TVs – making life easier for people right across the UK.”
