UK unveils new ￡10bn funding for semiconductor firms

UK semiconductor firms producing vital technology—from phone screens to surgical lasers—are being supported in their efforts to scale up and drive economic growth.

Science Minister Lord Patrick Vallance announced that 16 semiconductor firms will share an ￡11.5 million funding pot—provided by Innovate UK—to drive innovation, as he opened an industry conference of G7 nations today.

Pioneering projects across the country will help elevate the UK’s thriving semiconductor industry, enhancing everyday life—from more efficient medical devices to energy-saving phone screens—while kickstarting economic growth.

The UK semiconductor industry is set for rapid growth. This announcement precedes the Government’s International Investment Summit, showcasing the UK as a business destination.

Today’s initiative further encourages businesses to invest in the UK, supporting industries of the future.

A new report by Perspective Economics reveals that the UK semiconductor sector, encompassing over 200 companies in research, design, and manufacturing, is valued at nearly ￡10 billion and could grow to ￡17 billion by 2030.

Semiconductors are small chips at the core of everyday technology, from smartphones to renewable energy systems. This support will help scale domestic manufacturing and strengthen supply chain resilience.

The funding comes as the G7 Semiconductors Point of Contact group kicks off with a stakeholder forum at major UK tech company Arm’s HQ in Cambridge. Member states, research organizations, and industry representatives are discussing key issues affecting the global semiconductor industry, such as supporting early-stage innovation and sustainability.

Which semiconductor firms will receive funding? Among the funded firms is Vector Photonics , collaborating with the 英国格拉斯哥大学 to enhance the power and cost-effectiveness of blue light lasers in everyday technology using gallium nitride, a high-performance material.

Another project, led by Quantum Advanced Solutions Ltd. with the University of Cambridge, is developing advanced shortwave infrared (SWIR) sensors. These sensors improve vision in critical sectors like defence by supporting surveillance in challenging conditions, such as adverse weather or atmospheric disturbances.

The project aims to simplify production using innovative quantum dot materials—tiny semiconductor particles that emit light at specific wavelengths—offering higher sensitivity and performance while cutting costs, making this advanced technology more accessible to multiple sectors, including manufacturing and healthcare.

Science Minister Lord Vallance said: “Semiconductors are an unseen but vital component in so many technologies we rely on in our lives. Backing UK innovators presents a real opportunity to grow these firms into industry leaders, strengthening our ￡10 billion sector and ensuring it drives economic growth.”

He concluded: “Our support for these semiconductor firms will promote critical breakthroughs, such as more efficient medical devices that could significantly lower costs and faster manufacturing processes to improve productivity.”

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