The UK Government has released the following statement regarding the National Semiconductor Strategy 

New £1 billion strategy for UK’s semiconductor sector

A new 20-year plan to secure the world-leading strengths of the UK’s semiconductor industry has today (Friday 19 May) been unveiled by the government.

  • National Semiconductor Strategy reveals plan to double down on design, research and advanced chip leadership – securing the UK’s position as a global science and technology superpower
  • chip plan sets out how UK will build on industry strengths, safeguard supply chains from disruption and protect tech against national security risks – supporting the delivery of the government’s priority to grow our economy
  • government will invest up to £1 billion in the next decade to improve access to infrastructure, power more research and development and facilitate greater international cooperation, with up to £200 million over the years 2023-2025
  • follows UK and Japan commitment to establish ambitious collaboration in the semiconductor sector, covering R&D cooperation, skills exchanges, and improving the resilience of the semiconductor supply chain

The National Semiconductor Strategy sets out how up to £1 billion of government investment will boost the UK’s strengths and skills in design, R&D and compound semiconductors, while helping to grow domestic chip firms across the UK.

Working in tandem with industry, investment made by the government will drive research, innovation and commercialisation through the sector – helping to deliver products from lab to market.

It comes as the Prime Minister is at the G7 leaders’ Summit in Japan for discussions on strengthening our tech collaboration with like-minded economies and strengthening supply chains for critical technology like semiconductors.

Semiconductors are vitally important for the modern world we live in, being an essential component for the functioning of almost every electronic device we use. From phones and computers to ventilators and power stations, nearly every piece of technology in the world depends on them.

Over a trillion semiconductors are manufactured each year, with the global semiconductor market forecast to reach a total market size of $1 trillion by 2030. Semiconductors also underpin future technologies, such as artificial intelligence, quantum and 6G.

The strategy focuses on the UK’s particular areas of strategic advantage in the semiconductors sector – semiconductor design, cutting-edge compound semiconductors, and our world-leading R&D ecosystem – supported by UK universities from Cambridge to Cardiff and Manchester to Edinburgh demonstrating global leadership in this space.

Compound semiconductors do things silicon chips can’t, with use cases in evolving technologies such as autonomous driving and future telecoms. Their creation requires expertise in advanced materials, an area of UK science leadership.

To support the growth of the sector in the UK, the government will invest up to £200 million over the years 2023-2025 to improve industry access to infrastructure, power more research and development and facilitate greater international cooperation.

Taking a strategic approach to investment over the next decade, the government will invest up to £1 billion in a range of measures to secure the UK’s advantage in this globally important sector and meet 3 key objectives:

  • growing the domestic sector
  • mitigating the risk of supply chain disruptions
  • protecting our national security

The strategy builds on the consistent support the government has provided for the semiconductor industry, having provided £539 million in grants for research and £214 million directly to SMEs in the sector across the last 10 years, as well as funding 450 PhD students since 2017.


Statement from Charles Sturman, CEO Techworks 

“The UK has a strong heritage in the Semiconductor Industry, with many world-class companies across the value chain from design to manufacturing. As the UK trade association for Semiconductor and Deep Tech, we welcome this much needed National Strategy and the resulting government focus which it brings. The strategic investment will provide a catalyst for growth and scale-up in UK capabilities across the ecosystem, as we develop the new materials and devices which will fuel future markets in Advanced computing, Quantum, IoT & Cybersecurity, Telecoms and Electrified Mobility – all areas where the UK has significant opportunities.

We look forward to working with the UK Government on implementing the strategy and building a world-class Semiconductor ecosystem in the UK.”