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.
Science Minister Lord Patrick Vallance announced that 16 semiconductor firms will win a share of a £11.5m 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 take the UK’s thriving semiconductor industry to the next level, further enhancing everyday life—from more efficient medical devices to energy-saving phone screens—and kickstarting economic growth.
The UK semiconductor industry is set for rapid growth
This will be announced 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 businesses to choose the UK as a place to invest—it supports the industries of the future.
A new report by Perspective Economics reveals that the UK semiconductor sector, which includes over 200 companies in research, design, and manufacturing, is valued at almost £10bn and could grow to £17bn by 2030.
Semiconductors are small chips at the core of everyday technology, from smartphones to renewable energy systems. This support will help scale up 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 organisations, and industry representatives are discussing key issues affecting the global semiconductor industry, like supporting early-stage innovation and sustainability.
Which semiconductor firms will receive funding?
Among the funded semiconductor firms is Vector Photonics Limited, which, in collaboration with the University of Glasgow, aims to enhance the power and cost-effectiveness of blue light lasers in everyday technology by 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 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.
Science Minister Lord Vallance said: “Semiconductors are an unseen but vital component in so many of the technologies we rely on in our lives.
“Backing UK innovators offers a real opportunity to grow these firms into industry leaders, strengthening our £10bn 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.”
