Government to invest up to £1bn in National Semiconductor Strategy

The £1bn investment over 10 years is based around three key objectives, namely growing the domestic sector, mitigating the risk of supply chain disruptions, and protecting the UK’s national security.

The overall strategy is focused on the UK’s areas of strategic advantage in the semiconductors sector, including semiconductor design, compound semiconductors, and Britain’s R&D ecosystem.

To support the growth of the compound semiconductors sector, the government will invest up to £200m between 2023-25 to improve industry access to infrastructure, deliver more research and development and facilitate greater international cooperation.

“Semiconductors underpin the devices we use every day and will be crucial to advancing the technologies of tomorrow,” PM Rishi Sunak said in a statement. “Our new strategy focuses our efforts on where our strengths lie, in areas like research and design, so we can build our competitive edge on the global stage.”

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