The new semiconductor-focused funding is part of a wider Digital and Technologies Sector Plan. This is a set of announcements under the government’s Industrial Strategy.

Specifically, the £35 million will be used to scale up and continue the recently announced Semiconductor Talent Expansion Programme (STEP). This was originally funded for one year.

The STEP programme includes new chip design courses for students, bursaries, schools outreach, and a proposed master’s conversion course to help more people move into the semiconductor sector.

Investment

Note that the funding will cover four financial years years, ending in 2029/2030. And organisations will be able to submit bids for the contract due course.

To put the semiconductor funding it into context, £670 million is going to quantum computing. And engineering biology researchers are in line for £380 million.

“Britain is full of ambitious risk-takers driven by a desire to innovate and improve people’s everyday lives,” said Science and Technology Secretary, Peter Kyle (pictured). “It is on us in government to match that boldness by investing in our country’s immense potential and embracing businesses who can drive that change and grow our economy.”

“From quantum computers that could revolutionise drug discovery and make the NHS fit for the future, to sustainable fuels that can make the UK a clean energy superpower, science and technology has a key part to play in delivering our modern Industrial Strategy to renew our country and support our Plan for Change.”

The government’s white paper follows a green paper published last year. This sets out a 10-year plan to stimulate investment and activity across eight sectors with high growth potential (‘IS-8’).

Semiconductor talent

The CEO of UK Electronics Skills Foundation (UKESF), Stewart Edmondson, was among those who welcomed the semiconductor funding.

“Together with the £5m skills package for this [financial year], this marks a major investment in the future talent pipeline for the industry,” he said.

“It is very welcome and is a significant vote of confidence from the Government in the semiconductor sector UK.”

UK Semiconductor Centre

Note that there will also be a new UK Semiconductor Centre. This will be receiving £19 million of funding.

It will be “a single point of contact for global firms and governments to engage with the UK semiconductor sector”.

The aim is to help form new industry partnerships and also strengthen the UK’s role in global supply chains.

EngineeringUK

EngineeringUK also welcomes the announcement, and highlights the need to avoid “silo thinking”.

“The government’s ambitious plans for the economy should go some way to creating certainty for businesses across the UK,” said Beatrice Barleon, Head of Policy and Public Affairs at EngineeringUK. “We hope that this certainty will in turn support employers’ confidence in investing in skills.

“We welcome the acknowledgement that the success of the Industrial Strategy relies on the UK having a skilled workforce. We are particularly pleased with the recognition of the important role engineering and tech skills have in underpinning multiple sectors. It’s vital that government links sector plans into a wider engineering & technology workforce strategy and avoids silo thinking.”

EngineeringUK is a not-for-profit that encourages more young people to choose engineering and technology careers.

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