The UK’s Department for Science, Innovation and Technology (DSIT) has announced a new funding boost for 16 semiconductor scale-ups in an effort to drive growth in the domestic chip industry.
According to a new report by Perspective Economics, the UK semiconductor industry is valued at approximately £10bn and is projected to reach up to £17bn by the end of this decade. The UK’s chip sector comprises more than 200 companies, engaged in research, design, and manufacturing.
The DSIT is offering a total of £11.5m through Innovate UK to the scale-ups. This was announced by UK Science Minister Lord Patrick Vallance during the launch of a stakeholder forum ahead of the G7 Semiconductors Points of Contact Group in Cambridge.
“Semiconductors are an unseen but vital component in so many of the technologies we rely on in our lives and backing UK innovators offers a real opportunity to growth these firms into industry leaders, strengthening our £10bn sector and ensuring it drives economic growth,” said Vallance. “Our support in these projects will promote critical breakthroughs such as more efficient medical devices that could significantly lower costs and faster manufacturing processes to improve productivity.”
New boost for UK semiconductor industry
Vector Photonics is one of the semiconductor scale-up projects selected by the DSIT for its funding infusion. The project in partnership with the University of Glasgow is focused on improving the power and cost-effectiveness of blue light lasers in everyday technology. This will be done by leveraging gallium nitride. Blue lasers are widely used in medical equipment, quantum displays and car headlights.
Another project chosen for the funding boost is led by Quantum Advanced Solutions, alongside the University of Cambridge. It aims to create advanced shortwave infrared (SWIR) sensors which enhance vision in critical sectors including defence. The SWIR sensors will support surveillance during adverse conditions in low-visibility environments.
This semiconductor scale-up project aims to streamline the production of these sensors by utilising new quantum dot materials, thereby delivering higher sensitivity and performance. In addition, the project is expected to lower costs and bring this advanced technology to multiple sectors including manufacturing and healthcare.
Founded under Italy’s G7 Presidency earlier this year, the G7 Semiconductors Point of Contact Group is engaged in tackling problems impacting the chip industry. This includes early-stage innovation, sustainability, crisis coordination, as well as the influence of government policies and practices.
The new UK funding for its domestic chip sector comes after the previous Conservative-led government announced its creation of the UK Semiconductor Institute earlier this year. The UK Semiconductor Institute is also a meeting point for civil servants, academics, and private sector executives to discuss the health and direction of the country’s chip industry. It will harness the government’s £1bn strategy to grow its semiconductor industry.
Announced in May 2023, the commitment to the nation’s chip sector over the next 10 years focuses on Britain’s strengths in design, research and development (R&D) and compound semiconductors. At the time, some believed that the investment would fall short in key areas and would do little to protect the supply of key components in the event of another global chip shortage.
Read more: US awards $123m in funding to Polar Semiconductor to boost domestic chip production
