Issued by: Department for Science, Innovation and Technology & Innovate UK

Support for semiconductor scale-ups announced as Lord Vallance kicks off a stakeholder forum ahead of the G7 Semiconductors Points of Contact group in Cambridge.

- Science Minister Lord Vallance unveils new support for UK semiconductor scale-ups to advance innovations, from phone screens to medical tech

- Support to help businesses grow unveiled as Minister welcomes leading tech nations to a stakeholder forum preceding the G7 Semiconductors Points of Contact group in Cambridge

- Comes as new report finds rapidly growing UK semiconductor industry valued at nearly £10 billion and expected to rise this decade

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

The science Minister Lord Patrick Vallance has announced the 16 projects that will win a share of a £11.5 million pot – provided by Innovate UK – that will help drive innovation, as he opened an industry conference of G7 nations today (Thursday 26 September).

Pioneering projects across the country will help take the UK’s thriving semiconductor industry to the next level as it further enhances everyday life – from more efficient medical devices to energy saving phone screens – and kickstart economic growth.

This comes shortly before the Government’s International Investment Summit which will showcase the UK as a place to do business. Today’s move is yet another reason for business to choose the UK as a place to invest – as it is backing the industries of the future.

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

Semiconductors are small chips at the core of everyday technology from smartphones to renewable energy systems and this support will help to scale up domestic manufacturing and strengthen supply chain resilience, so the UK is fit for the future in a global industry.

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, where member states, research organisations, and industry representatives are discussing key issues affecting the global semiconductor industry, like supporting early-stage innovation and sustainability.

Science Minister, Lord Vallance, said:

"Semiconductors are an unseen but vital component in so many of the technologies we rely on in our lives and backing UK innovators offers a real opportunity to growth these firms into industry leaders, strengthening our £10 billion sector and ensuring it drives economic growth.

"Our support in these projects will promote critical breakthroughs such as more efficient medical devices that could significantly lower costs and faster manufacturing processes to improve productivity.

"Hosting the G7 semiconductors Points of Contact group is also a chance to showcase the UK’s competitive and growing sector and make clear our commitment to keeping the UK at the forefront of advancing technology."

Among the funded projects, receiving a share of £11.5 million, is Vector Photonics Limited in collaboration with the University of Glasgow, which aims to enhance the power and cost-effectiveness of blue light lasers in everyday technology by using gallium nitride, a high-performance material. Blue lasers are key in devices like medical equipment, quantum displays and car headlights.

Another project, led by Quantum Advanced Solutions Ltd with the University of Cambridge, is developing advanced shortwave infrared (SWIR) sensors which improve vision in critical sectors like defence, by supporting surveillance in challenging conditions in low-visibility environments, such as during adverse weather conditions or atmospheric disturbances. The project looks to simplify production using innovative quantum dot materials – tiny semiconductor particles that emit light at specific wavelengths – offering higher sensitivity and performance, cutting costs and making this advanced technology more accessible to multiple sectors including manufacturing and healthcare.

Andrew Tyrer, Deputy Director, Electronics, Sensors and Photonics, Innovate UK, said:

"Innovate UK’s investment in this programme directly supports the National Semiconductor Strategy launched in 2023 and aims to ensure the UK’s place in the global landscape."

Iain Mauchline Innovation Lead - Electronics, Sensors, and Photonics at Innovate UK, added:

"It has been recognised that semiconductors are key enablers for the UK ambitions across all critical technology areas. Funding these diverse projects highlights the strengths and depth of the UK’s semiconductor ecosystem."

The G7 Semiconductors Point of Contact Group, established under Italy’s G7 Presidency earlier this year, continues its mission to address issues impacting the semiconductor industry, including early-stage innovation, crisis coordination, sustainability, and the impact of government policies and practices.

Rene Haas, CEO, Arm said:

"It is an honour to host the G7 Semiconductor working group at Arm’s global headquarters in Cambridge to advance collective efforts from industry, research organizations, and governments to increase supply chain resilience, security, and energy efficiency. We look forward to continued partnership with the G7 representatives and the UK government as we work to enable innovation and realize the full potential of AI.”

This meeting immediately follows the OECD Semiconductor Informal Exchange Network gathering, where countries and stakeholders shared strategies for strengthening global semiconductor supply chains and addressing shared challenges in the semiconductor industry.

The UK is playing a key role in the OECD’s efforts to unite government and industry in navigating the complexities of the global chip supply chain.

Charles Sturman, CEO of TechWorks said:

"This report represents the first detailed economic study of the UK Semiconductor sector in many years. I am proud to have been part of this important work and pleased with the results. Key findings here show that the UK already sees significant revenue from the sector and, by building on strong innovation, we can see significant opportunity to increase this together with our ~2% share of global semiconductor revenues; ultimately creating much more than the 86,000 jobs currently in the wider economy. The industry is set to grow rapidly in the next decade and the right mix of scale-up support and industrial policy can secure future growth of the UK semiconductor sector."

Notes to editors

Full list of winners can be found on UKRI’s website here: (https://www.ukri.org)

Read the full Perspective Economics study here: (https://www.gov.uk/government/publications/semiconductor-sector-study)

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