How can the UK build a strong and resilient semiconductor ecosystem?
Semiconductors are the bedrock of the modern digital world – powering almost every element of our daily lives. They underpin national security, economic competitiveness … everything from smartphones to satellites, electric vehicles to edge devices. But global supply chain disruptions, rising geopolitical tensions, and growing demand have all highlighted the risks of reliance on overseas sources for critical chip technologies.
The UK, with its rich heritage in semiconductor research and innovation, has an opportunity – and a responsibility – to build a strong, sustainable semiconductor ecosystem. But how do we get there?
Focus on what we do best
The UK doesn’t need to recreate Silicon Valley or Taiwan; we can double down on our strengths in advanced research, world-leading chip design, and specialist technologies like flexible semiconductors. We also have a rich industrial heritage, with a strong focus on manufacturing, that we can leverage to our advantage.
We’re home to pioneers in AI accelerators, quantum computing, and energy-efficient hardware. And we’ve already proven our worth on a global stage. The key is to create the conditions where more of these companies can scale, manufacture locally, and stay rooted in Britain.
With global supply chain vulnerabilities exposed by recent disruptions, the UK has a unique opportunity to establish itself as a reliable, innovative hub for semiconductor design and manufacturing, with a focus on advanced materials and manufacturing.
By prioritising innovative semiconductor technology investment, the UK can grow high-value jobs, drive innovation, and reduce dependency on foreign supply chains, particularly in an era of increasing geopolitical tension.
A thriving semiconductor and advanced manufacturing ecosystem will not only boost the UK’s GDP but also position us as a global technology leader, ensuring economic resilience and national security for years to come.
Invest across the value chain
Resilience isn’t just about having foundries on home soil. It’s about supporting the whole value chain – from research and design to fabrication and integration. That requires coordinated investment in infrastructure, people, and partnerships.
The government’s £1 billion National Semiconductor Strategy is a welcome start. But sustained, long-term funding is essential – particularly in areas where the UK can lead, like flexible semiconductors, which offer a low-cost, low-carbon alternative to traditional microchips.
This direct support could include:
-
capital expensing for pre-profit companies, to allow them to benefit from the recent introduction of full expensing
-
government-backed loans or loan guarantees for R&D-focused companies, to allow for investment in facilities
-
Improved access to domestic finance for innovation
The measures to improve access to finance to support semiconductor manufacturing, introduced in the 2023 Autumn Statement, were welcome. They allowed the UK Infrastructure Bank to co-lead Pragmatic’s Series D funding round with M&G Catalyst, which meant that the fund was majority-backed by British capital. To match that success, support must be extended to other companies in the sector.
Currently in the UK, less money is being invested in late-stage investments, and the funds that are investing spread their risk more widely, meaning that there’s less money available for each company. As a result, individual companies aren’t getting the backing they need to grow.
By encouraging more funds to invest in semiconductor companies, and encouraging funds to be more willing to support scale-up companies, we can help to build a semiconductor sector fit for the future and ensure the sector has the capital it needs to thrive – now and into the future.
Build manufacturing capacity that works for the UK
We can’t compete with long-established megafabs – but we don’t have to. What we need are manufacturing models that align with our scale and sustainability goals – agile facilities that can deliver chips quickly, cleanly, and competitively.
Flexible semiconductors are one such example. They avoid the need for very large cleanrooms or high-temperature processes, cutting both cost and environmental impact. They can be manufactured in compact, modular fabs – ideal for UK-based production. Supporting alternative models like these adds diversity to our ecosystem and helps us build resilience without needing to replicate global giants.
Grow the talent pipeline
People power this industry. Yet we’re facing a major skills gap across the UK tech and engineering sectors. To stay competitive, we need to inspire the next generation of chip designers, materials scientists, and systems engineers.
That means stronger links between academia and industry, more hands-on experience, and a sharper focus on cultivating diverse talent. A resilient ecosystem is one that draws from the widest possible pool of talent across gender, background, and geography.
But until we have the domestic workforce, we must also bring in talent from abroad.
Where reforms have been brought in, such as short-term visas to address skilled worker shortages, they have not gone far enough to meet the challenge. Meanwhile, investment in skills and training, even for educators, has not matched the need for a sustainable workforce.
Introducing an advanced manufacturing visa would make it easier for skilled workers from abroad to help us to grow our domestic sector.
Collaborate across the ecosystem
No single company, university, or government can build this alone. It takes coordinated action between academia, startups, scale-ups, manufacturers, investors, and policymakers. It also requires bold, confident collaboration with global partners – particularly in Europe and trusted allied nations – to ensure supply chain security and access to strategic resources.
We’re already seeing some of this in action, with new partnerships, open innovation hubs, and cross-sector working groups. These must continue — and accelerate.
The UK’s future in semiconductors doesn’t hinge on chasing headlines. It hinges on backing what we’re good at, scaling where we can win, and building smart, sustainable supply chains fit for tomorrow’s tech.
By investing in strategic strengths, supporting agile manufacturing models, and nurturing talent and collaboration, we can build an ecosystem that’s not only resilient, but globally competitive and future-ready.
techUK – Unleashing UK Tech and Innovation
The UK is home to emerging technologies that have the power to revolutionise entire industries. From quantum to semiconductors; from gaming to the New Space Economy, they all have the unique opportunity to help prepare for what comes next.
techUK members lead the development of these technologies. Together we are working with Government and other stakeholders to address tech innovation priorities and build an innovation ecosystem that will benefit people, society, economy and the planet - and unleash the UK as a global leader in tech and innovation.
For more information, or to get in touch, please visit our Innovation Hub and click ‘contact us’.
Upcoming events
Latest news and insights
Other forms of content
Sprint Campaigns
techUK's sprint campaigns explore how emerging and transformative technologies are developed, applied and commercialised across the UK's innovation ecosystem.
Activity includes workshops, roundtables, panel discussions, networking sessions, Summits, and flagship reports (setting out recommendations for Government and industry).
Each campaign runs for 4-6 months and features regular collaborations with programmes across techUK.
techUK's latest sprint campaign is on Robotics & Automation technologies. Find out how to get involved by clicking here.
Running from September to December 2023, this sprint campaign explored how the UK can lead on the development, application and commercialisation of space technologies, bring more non-space companies into the sector, and ultimately realise the benefits of the New Space Economy.
These technologies include AI, quantum, lasers, robotics & automation, advanced propulsion and materials, and semiconductors.
Activity has taken the form of roundtables, panel discussions, networking sessions, Summits, thought leadership pieces, policy recommendations, and a report. The report, containing member case studies and policy recommendations, was launched in March 2024 at Satellite Applications Catapult's Harwell campus.
Get in touch below to find out more about techUK's ongoing work in this area.
Event round-ups
Report
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from January to May 2024, this sprint campaign explored how the UK can lead on the development, application and commercialisation of the technologies set to underpin the Gaming & Esports sector of the future.
These include AI, augmented / virtual / mixed / extended reality, haptics, cloud & edge computing, semiconductors, and advanced connectivity (5/6G).
Activity took the form of roundtables, panel discussions, networking sessions, Summits, and thought leadership pieces. A report featuring member case studies and policy recommendations was launched at The National Videogame Museum in November 2024.
Get in touch below to find out more about techUK's future plans in this space.
Report
Event round-ups
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from July to December 2024, this sprint campaign explored how the UK can lead on the development, application and commercialisation of web3 and immersive technologies.
These include blockchain, smart contracts, digital assets, augmented / virtual / mixed / extended reality, spatial computing, haptics and holograms.
Activity took the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and a report (to be launched in 2025).
Get in touch below to find out more about techUK's future plans in this space.
Event round-ups
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from February to June 2025, this sprint campaign is exploring how the UK can lead on the development, application and commercialisation of robotic & automation technologies.
These include autonomous vehicles, drones, humanoids, and applications across industry & manufacturing, defence, transport & mobility, logistics, and more.
Activity is taking the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and a report (to be launched in Q4 2025).
Get in touch below to get involved or find out more about techUK's future plans in this space.
Upcoming events
Insights
Event round-ups
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Campaign Weeks
Our annual Campaign Weeks enable techUK members to explore how the UK can lead on the development and application of emerging and transformative technologies.
Members do this by contributing blogs or vlogs, speaking at events, and highlighting examples of best practice within the UK's tech sector.
Summits
Tech and Innovation Summit 2025
Tech and Innovation Summit 2023
Tech and Innovation Summit 2024
Receive our Tech and Innovation insights
Tech and Innovation updates
Sign-up to get the latest updates and opportunities across Technology and Innovation.
