The UK Government has unveiled a new £10m investment fund to accelerate semiconductor development, positioning Britain as a key player in one of the world’s fastest-growing technology sectors.
Announced by Tech Minister Kanishka Narayan at the Microelectronics UK Conference, the initiative aims to strengthen domestic semiconductor capabilities, reduce reliance on global supply chains, and create high-skilled jobs in advanced manufacturing.
Narayan explained: “There is immense potential in the UK semiconductor sector. By investing in its growth, we will build on our country’s strengths, setting ourselves apart in a highly competitive market to unlock new skilled jobs at home and boost our economy.
“We’re backing Britain’s businesses with the support they need to thrive, helping turn world-class research into major advancements such as more efficient mobile phones and TVs – making life easier for people right across the UK.”
Supporting semiconductor innovation nationwide
Up to 40 British businesses are set to benefit from the Innovate UK fund, which will provide access to cutting-edge manufacturing facilities, technical expertise, and business mentoring.
Companies will be supported in transforming early-stage research into commercial products that power everything from smartphones and electric vehicles to medical devices and renewable energy systems.
Among the businesses receiving support is Paragraf Limited, a Cambridge-based pioneer in graphene technology. Its highly energy-efficient semiconductor devices promise to extend mobile phone battery life while reducing energy consumption in transport and defence systems.
Another recipient, Silicon Microgravity Limited, is developing compact navigation devices that function without satellite signals – vital for applications ranging from wearable tech to industrial robotics.
Iain Mauchline, Head of Semiconductors, Innovate UK, added: “This funding being delivered by Innovate UK is for diverse projects, all developing cutting-edge semiconductor innovations that are fundamental for the UK and our frontier technology areas.
“We’re pleased to provide support for these innovative companies that are using semiconductors as the key enabling technology to make a difference across a vast range of industries.”
A global market opportunity
The global semiconductor industry is worth hundreds of billions of pounds, and the UK sector is projected to grow by 75% by 2030.
By targeting areas where Britain already excels, such as chip design, flexible electronics, and graphene innovation, the new fund aims to attract further international investment and cement the UK’s reputation as a hub for technological breakthroughs.
Strategic value for national security
Beyond consumer electronics, semiconductors underpin critical national infrastructure, including defence, satellites, and cybersecurity.
Strengthening the UK’s semiconductor development capacity is seen as vital to ensuring resilience against global supply chain disruptions, a challenge highlighted during the pandemic and recent geopolitical tensions.
Building on strong foundations
The investment builds on the achievements of leading UK firms such as Arm, Pragmatic, Vishay, and KLA, which are driving advancements in chip design, flexible electronics, and power semiconductors.
Together, these companies represent a growing ecosystem that can deliver the next wave of technological innovation.
By backing world-class research and supporting businesses to scale, the government hopes to deliver smarter, more secure technologies that improve everyday life while securing Britain’s place in the global semiconductor race.
This funding signals a clear commitment: the future of UK economic growth and national security will be powered by semiconductor development.
