A new UK-Bulgaria partnership is boosting semiconductor innovation, investment, and skills across the tech sector.
The collaboration is creating opportunities for innovation, investment, and skills development, strengthening bilateral ties and supporting Bulgaria’s efforts to position itself as a competitive player in Europe’s semiconductor innovation landscape.
Under the UK-Bulgaria Strategic Partnership, the Science and Technology Network (STN) and Department for Business and Trade (DBT) have connected UK expertise with Bulgaria’s ambitions under the EU Chips Act 2023 and its fast-growing auto electronics sector.
The importance of semiconductors in a growing digital world
Semiconductors underpin everything – from smartphones to electric vehicles and renewable energy systems.
Their ability to act as switches and amplifiers allows for miniaturisation, increased power, and lower costs, driving technological progress across nearly every industry.
Secure and diverse supply chains are essential for economic resilience and technological leadership.
Bulgaria as a growing hub for semiconductor innovation
Bulgaria is a gateway to Eastern markets and a key manufacturing hub in Southeast Europe.
The country now produces about 80% of sensors used in European cars and hosts state-of-the-art research and development centres and smart factories.
The electronics sector is projected to grow from approximately €2.3bn in 2023 to €2.7bn by 2028, representing a compound annual growth rate of 2.9%, making Bulgaria a key hub for semiconductor innovation.
Bulgaria’s automotive industry comprises around 380 companies employing over 80,000 people and contributes more than 10% to Bulgaria’s GDP, making it a key driver of economic growth.
The €1bn EU-backed research and development push and EU Chips Act 2023 ambitions create strong partnership potential. All these factors showcase Bulgaria as an important hub in the growing European semiconductor supply chain and chip manufacturing.
Expanding technological skills in Bulgaria
The next step in the UK-Bulgaria partnership is to establish a green silicon carbide wafer factory in Bulgaria, which is already developing exports worth £10.5m to the UK.
By linking UK compound semiconductor innovation with Bulgaria’s manufacturing capacity, STN has helped lay the foundation for longer-term collaboration in research and development and for business investment.
By doing so, partnerships can:
- Diversify production with Europe, enhancing supply chain protection and mitigating geopolitical risks
- Co-located research and development hubs and factories create an ecosystem for rapid prototyping and commercialisation of next-generation materials like silicon carbide.
- Joint training programmes and academic exchanges will help close the skills gap in a sector facing global shortages.
- Help facilitate supportive policy frameworks that can advance international partnerships.
The Science and Technology Network (STN) has served as a trusted bridge between government, academia, and industry in the UK and Bulgaria – strengthening mutual understanding and unlocking opportunities for collaboration in semiconductor innovation.
