The UK semiconductor industry has secured significant government funding to bolster the growth of 16 scale-up companies within the sector.
These businesses will benefit from a total of £11.5 million in funding from Innovate UK, the national innovation agency, as part of the government-supported 2023 National Semiconductor Strategy aimed at enhancing this critical industry. The semiconductor market has diverse applications, ranging from mobile phone displays to surgical lasers. According to research by the Belfast-based consulting firm Perspective Economics, the UK semiconductor market is currently valued at nearly £10 billion and has the potential to grow to £17 billion by 2030.
One of the recipients of this funding is Vector Photonics, affiliated with the University of Glasgow, which focuses on improving the power and cost-efficiency of blue light lasers used in medical devices, quantum displays, and automotive lighting. Another beneficiary, Quantum Advanced Solutions, is collaborating with the University of Cambridge to develop advanced shortwave infrared sensors that will enhance imaging capabilities in critical sectors, including defense.
The government stated, “Innovative projects throughout the country will elevate the UK’s vibrant semiconductor industry, improving everyday technologies such as more efficient medical devices and energy-saving screens while driving economic growth.” This announcement aligns with the launch of a semiconductor market stakeholder forum hosted at Arm’s headquarters in Cambridge, designed for the G7 Semiconductors Point of Contact Group.
Formed under Italy’s G7 presidency earlier this year, the group aims to address challenges within the semiconductor industry, focusing on early-stage innovation, crisis management, sustainability, and the implications of government policies. Participants, including representatives from member states, research organizations, and the industry, are set to engage in discussions during the ARM event to tackle these issues.
Science minister Lord Vallance emphasized, “Semiconductors are crucial, yet often overlooked, components of the technologies we depend on daily. Supporting UK innovators presents a real opportunity to cultivate these companies into industry leaders, thereby reinforcing our £10 billion sector and promoting economic progress. Our involvement in these projects will facilitate vital advancements, such as more efficient medical devices that could dramatically reduce costs and enhance manufacturing productivity.”
He further noted, “Hosting the G7 Semiconductors Points of Contact Group is also an opportunity to highlight the UK’s competitive and burgeoning sector, underscoring our dedication to maintaining the UK’s position at the forefront of technological advancement.”
Iain Mauchline, Innovate UK’s lead for electronics, sensors, and photonics, stated that the organization’s investment in this initiative aims to showcase the diverse applications of semiconductors. “Semiconductors are essential enablers for the UK’s ambitions across critical technology domains,” he said. “Supporting these varied projects highlights the strengths and breadth of the UK’s semiconductor ecosystem.”