TechUK has called on the UK government to speed up its implementation of the National Semiconductor Strategy (NSS), following the release of an updated review. The review highlights the critical importance of securing the UK’s place in the semiconductor industry, which is projected to reach $1 trillion globally by the end of this decade. TechUK warns that, to ensure economic growth, technological leadership, and national resilience, the UK must act quickly and decisively to capitalise on opportunities in this vital sector.
The trade association’s review stresses that the UK already has competitive advantages in key areas such as semiconductor design, intellectual property (IP), research and development (R&D), and compound semiconductors. To become a global leader in this industry, the UK government must focus on building upon these existing strengths. This includes introducing policies that encourage growth in high-potential sub-sectors and providing financial support to scale successful businesses. The goal is to ensure that these sub-sectors can thrive and help establish the UK as a major player on the world stage.
Despite being home to the world’s third-largest tech sector, many UK semiconductor start-ups struggle to access the capital needed to expand. TechUK highlights the need for a more dynamic investment ecosystem in the UK, with both private and public funding playing crucial roles. A robust investment environment would allow semiconductor companies to scale, commercialise innovative technologies, and compete globally. TechUK advocates for policies that attract investment to ensure the sector’s growth and long-term success. The organisation also urges the government to leverage this interdependence by forging strategic international partnerships. These collaborations should focus on joint research and development efforts, as well as sharing investment and innovation opportunities.
TechUK proposes six-point plan for action
To achieve these goals, TechUK has proposed a six-point action plan to drive forward the NSS. The plan includes measures such as retaining the UK’s leadership in chip design and intellectual property, supporting applied R&D, incentivising investment in emerging technologies, fostering innovation, nurturing the skills needed for the semiconductor workforce, and strengthening the UK sector through global partnerships. TechUK has emphasised the urgency of implementing these measures to maintain the UK’s competitiveness in the rapidly evolving semiconductor market.
“By accelerating the implementation of the National Semiconductor Strategy, we can unlock investment, foster innovation, and strengthen our position in this critical industry,” said TechUK’s technology and innovation associate director, Laura Foster. “We must act at pace to secure the UK’s semiconductor future and as such our technological and economic resilience.”
In September 2024, the UK government presented findings from research on the British chip sector commissioned by the Department for Science, Innovation and Technology (DSIT) in 2023. The results revealed that, in 2022, dedicated semiconductor companies in the UK generated £9.6bn in revenues, representing approximately 2% of the global semiconductor market. More than 40% of this revenue was generated by UK-headquartered companies, with Arm accounting for 25% of total revenue and 20% of employment in the sector. The report also highlighted the significant role the UK plays in global semiconductor research and development, with 72% of internationally headquartered semiconductor companies conducting R&D and design work in the country.
Projections suggest that UK semiconductor revenues could grow to between £13bn and £17bn by 2030, depending on various growth scenarios. Arm’s overall performance offers further insights into the UK’s semiconductor landscape. The company, which remains the largest semiconductor firm headquartered in the UK, recently adjusted its full-year revenue outlook after exceeding Wall Street expectations in its third-quarter 2025 earnings report. While Arm’s forecast range was narrowed, the company continues to show strong growth.
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