£11.5 million Boost for UK Semiconductor Industry as Innovate UK Invests in Supply Chain Resilience

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The UK semiconductor industry has received a significant boost as Innovate UK, a part of UK Research and Innovation, has announced an investment of £11.5 million spread across 16 innovative projects.

This funding is aimed at scaling up semiconductor manufacturing, improving supply chain resilience, and fostering new collaborations between industry and academia.

This investment is the final phase of an £18 million programme under the UK’s national semiconductor strategy set up under the Conservative Government, which aims to build on the UK’s strengths in this vital sector. The strategy is designed to enhance the UK’s capability in semiconductor technology, ensure security and resilience in supply chains, and protect the nation’s technological edge in a rapidly evolving global market.

Key Projects and Participants

Among the award winners is Paragraf Limited, a company with a vision to establish the first 2D materials device foundry in the world, focusing on graphene technology. Paragraf, in collaboration with the universities of Glasgow and Birmingham, aims to scale up its graphene growth technology from 2” wafers to 6” wafers, making strides in manufacturing and device reliability testing that have never been attempted before.

Other notable participants include Flexciton Limited and Seagate Technology Ireland, who are working together on a project aimed at automating solutions to dramatically improve wafer-fab efficiency. This project directly supports the national strategy by enhancing the competitiveness of the UK semiconductor sector.

Vector Photonics Limited, another award winner, is pioneering the development of advanced photonic crystal structures for blue lasers, which are crucial for applications in quantum technologies, displays, and medical devices. Their collaboration with the University of Glasgow aims to strengthen the UK’s leadership in this burgeoning field.

Strategic Goals

The primary goals of these investments are to scale up semiconductor manufacturing within the UK and to improve the resilience of the supply chain. Innovate UK is keen on establishing new manufacturing techniques and expanding the capabilities of existing ones. By fostering stronger relationships between product designers and manufacturers, the initiative hopes to drive innovations that will keep the UK at the forefront of semiconductor technology.

Addressing Future Skills Gaps

One critical component of this investment is addressing the skills gap in the semiconductor industry. The UK Electronic Skills Foundation (UKESF) will conduct a feasibility study to identify future skills needs and deliver a ‘proof-of-concept’ training course to support the scale-up of manufacturing. This initiative is crucial for building a workforce capable of supporting the growing semiconductor sector.

A National Semiconductor Strategy

This £11.5 million investment is part of the larger national semiconductor strategy, which was launched in 2023. Previous rounds of funding included £1.5 million for semiconductor feasibility studies and £4.3 million for skills and training, laying the groundwork for this final phase of investment. The strategy seeks to ensure that the UK is not only a competitive player but also a leader in semiconductor technology, which is pivotal for the future of various industries, including communications, automotive, and healthcare.

Andrew Tyrer, Deputy Challenge Director for Electronics, Sensors and Photonics at Innovate UK, emphasised the importance of this programme in supporting the UK’s place in the global semiconductor landscape. He stated, “It has been recognised that semiconductors are key enablers for the UK’s ambitions across all critical technology areas.”

The Road Ahead

As the semiconductor industry faces global challenges, including geopolitical tensions and supply chain disruptions, the UK’s proactive approach through this funding initiative is a significant step in securing its technological and economic future. By investing in these 16 projects, the UK is positioning itself as a critical link in the global supply chain, ensuring that it remains a vital partner for international industry.

For a full list of the projects and their grant values, visit Innovate UK’s official announcement.

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