Building foundations for the future: How the UK is preparing for the next generation of semiconductors
Which product sold over 1.1 trillion units in 2021? One clue; without them, not a single piece of technology today would function.
We are, of course, talking about semiconductors. They are critical for technological progress, from working towards net zero to enabling us to fully reap the benefits of AI. It is unsurprising then that semiconductors have been identified as a critical technology in the UK Science and Technology Framework.
The UK has a central role to play in developing the next generation of semiconductor technologies. The UK National Semiconductor Strategy was published in May 2023 to help us build the enabling environment needed to grow the UK’s existing strengths, backed by £1bn investment over the next decade.
Amid the tens of billions of dollars separately announced by the EU and US to develop their own leading-edge semiconductor manufacturing, the UK Strategy has focused instead on deepening our existing competitive advantages, which is why we will be deepening our capabilities across: semiconductor R&D; chip design; and compound semiconductor technology.
Boosting our domestic sector
In the UK, we know that in order to grow, companies need support with commercialisation and access to finance. The leap from innovation to commercialisation can be particularly challenging. This is why we prioritised supporting early-stage startups through the government-funded ChipStart UK Incubator delivered by Silicon Catalyst. The programme is already supporting 11 startups. Following the success of the first cohort, we’re going to announce the successful applicants for the second cohort shortly.
To enhance commercialisation support we have also announced £22m in funding for two new Innovation and Knowledge Centres (IKCs) in Bristol and Southampton. This investment will translate scientific findings into business realities by supporting promising research and projects, offering access to state-of-the-art prototyping technology and nurturing early-stage companies and spin-outs. And there is much more to come.
It’s all about the people
The UK’s competitive advantage does not just come from our innovative companies, but it is firmly grounded in the talent we bring to the global market. Innovate UK has recently awarded funding of £4.8 million for 11 semiconductor skills projects across 32 organisations to build awareness of the semiconductor industry and fill key gaps in the UK’s workforce talent and training capabilities.
We are also funding new semiconductor Centres for Doctoral Training through the Engineering and Physical Sciences Research Council (EPSRC), where some of the UK’s brightest minds are working in the fields of photonics and compound conducting materials for use in tomorrow’s technological breakthroughs.
Preparing for future disruptions
Until the Covid-19 pandemic, no-one really appreciated the role of semiconductors across our economies. But when PlayStations stopped shipping and a global shortage of new cars sent used-car prices through the roof, people started to take notice. Through a variety of factors affecting both supply and demand, the pandemic led to significant disruptions to one of the world’s most complex supply chains. Specialisation and concentration in geographical areas over several decades has made semiconductor supply chains especially vulnerable to these disruptions, meaning that there will likely be more disruptions in the future.
The first step to building more resilience in the supply chain is to understand it. At the heart of the UK’s approach is therefore a focus on data gathering and working collaboratively to help UK organisations understand and respond to the risks they are facing.
We can’t do it alone
The complexity and variety of semiconductors make it impossible for any country to achieve supply chain autonomy; but it also makes it very difficult for any market actor to fully gain sight of the market as there are simply too many stages in the supply chain. To give some sense of the complexity, the machine used to print circuit designs onto silicon chips with extreme ultra-violet light has a little under 100,000 individual parts, many of which are precision instruments in themselves, and they’re all made by other individual companies. And that’s just one machine in one part of the process in the production of semiconductors. That’s why the best way to build greater resilience and awareness in supply chains is through international action.
We have announced partnership agreements with the US, Japan, the Republic of Korea, and put up to £35million behind UK participation in funding collaborative R&D projects through joining the EU Chips Joint Undertaking. We are joining this all up by pushing for stronger multilateral coordination on supply chain resilience through the OECD and G7.
Our international cooperation is already delivering tangible benefits for our own industry. We have just opened applications for an exciting DSIT-organised trip to the Netherlands, where attendees will be able to build relationships with world-leading Dutch players, receive support to unlock R&I funding opportunities, and gain access to innovative Dutch cluster destinations. If you’re a UK business, SME or research organisation with an interest in semiconductor R&I, we encourage you to apply here by 9am on Monday 13th May.
The future’s bright
Ten years ago, the UK Government launched a strategy to develop our quantum technology capabilities, and we’re now one of the world’s quantum leaders. This month marks the first anniversary of the National Semiconductor Strategy and we have no less ambition for our semiconductor industry than we do for quantum. In the first year of our Strategy, we have already made considerable progress developing our infrastructure, growing our skills base, and building out our international partnerships. And this is just the beginning as we plan to secure the UK’s place in the global value chain of an industry that will be worth $1trillion per year by 2030.
If we sparked your interest and you’d like to get in touch with us, please feel free to reach us at [email protected].
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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:
Gaming & Esports Technologies of the Future
National Videogame Museum, Sheffield Panel discussion
A Black Lens: Exploring Representation In The Future of Extended Reality (XR)
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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.
This campaign explored how the UK can lead on the development, application and commercialisation of space technologies 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.
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/
This campaign has 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 has taken the form of roundtables, panel discussions, networking sessions, Summits, and thought leadership pieces. A report featuring member case studies and policy recommendations is currently being produced (to be launched in September 2024).
Get in touch below to find out more about contributing to or collaborating on this campaign.
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 campaign will explore 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 will take the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and reports.
Get in touch below to find out more about contributing to or collaborating on this campaign.
Upcoming events
Event round-ups
Guest 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/
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 2023
Tech and Innovation Summit 2024
Laura Foster
Laura Foster
Laura is techUK’s Associate Director for Technology and Innovation.
She supports the application and expansion of emerging technologies, including Quantum Computing, High-Performance Computing, AR/VR/XR and Edge technologies, across the UK. As part of this, she works alongside techUK members and UK Government to champion long-term and sustainable innovation policy that will ensure the UK is a pioneer in science and technology
Before joining techUK, Laura worked internationally as a conference researcher and producer covering enterprise adoption of emerging technologies. This included being part of the strategic team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University, focussing on regional social history. Outside of work she loves reading, travelling and supporting rugby team St. Helens, where she is from.
- Email:
- [email protected]
- LinkedIn:
- www.linkedin.com/in/lauraalicefoster
Elis Thomas
Elis Thomas
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on AI, Semiconductors and Digital ID.
He previously worked at an advocacy group for tech startups, with a regional focus on Wales. This involved policy research on innovation, skills and access to finance.
Elis has a Degree in History, and a Masters in Politics and International Relations from the University of Winchester, with a focus on the digitalisation and gamification of armed conflicts.
- Email:
- [email protected]
- Website:
- www.techuk.org/
- LinkedIn:
- https://www.linkedin.com/in/elis-thomas-49a1aa1a1/
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/
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