Semiconductor market valued at £10bn as minister promises support
semiconductor

Semiconductor market valued at £10bn as minister promises support

Semiconductor market valued at £10bn as minister promises support

Science Minister Lord Vallance has unveiled new support for UK semiconductor scale-ups to advance innovations, from phone screens to medical tech.

The minister has welcomed leading tech nations to a stakeholder forum preceding the G7 Semiconductors Points of Contact group in Cambridge.

A total of 16 projects have been announced that will win a share of a £11.5m ($15.42m) pot provided by Innovate UK that will help drive innovation.

Lord Vallance said: “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.”

Pioneering projects across the country will help take the UK’s thriving semiconductor industry to the next level as it further enhances everyday life, from more efficient medical devices to energy-saving phone screens, and kick-starts economic growth.

This comes shortly before the government’s International Investment Summit, which will showcase the UK as a place to do business.

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A new report by Perspective Economics reveals that the UK semiconductor sector, which includes more than 200 companies in research, design and manufacturing, is valued at almost £10bn and could grow to £17bn by 2030.

Semiconductors are small chips at the core of everyday technology, from smartphones to renewable energy systems, and this support will help to scale up domestic manufacturing and strengthen supply chain resilience so the UK is fit for the future in a global industry.

The G7 Semiconductor Point of Contact group has started with a stakeholder forum at major UK tech company Arm’s HQ in Cambridge, where member states, research organisations and industry representatives are discussing key issues affecting the global semiconductor industry, like supporting early-stage innovation and sustainability.

Among the funded projects receiving a share of £11.5m is Vector Photonics in collaboration with the University of Glasgow, which aims to enhance the power and cost-effectiveness of blue light lasers in everyday technology by using gallium nitride, a high-performance material.

Blue lasers are key in devices like medical equipment, quantum displays and car headlights.

Another project, led by Quantum Advanced Solutions with the University of Cambridge, is developing advanced shortwave infrared (SWIR) sensors, which improve vision in critical sectors like defence by supporting surveillance in challenging conditions in low-visibility environments such as during adverse weather conditions or atmospheric disturbances.

The project looks to simplify production using innovative quantum dot materials offering higher sensitivity and performance, cutting costs and making this advanced technology more accessible to multiple sectors including manufacturing and healthcare.

Andrew Tyrer, deputy director, electronics, sensors and photonics, at Innovate UK said: “Innovate UK’s investment in this programme directly supports the National Semiconductor Strategy launched in 2023 and aims to ensure the UK’s place in the global landscape.”


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