New £10 million fund to support UK businesses to deliver next generation of semiconductors
Source: gov.uk (2025-09-23)

UK semiconductor innovation boosted as Tech Minister announces £10 million fund.

- Tech Minister announces £10 million fund to boost UK semiconductor innovation from lab to market
- Investment supports British companies developing computer chip technologies central to our national security and powering everyday products like phones and cars
- Funding helps UK’s strongest companies to compete in a global market worth hundreds of billions, supporting growth through the government’s Plan for Change
People across the country will benefit from smarter, more secure technology in their everyday lives thanks to a £10 million investment in British semiconductors announced by Tech Minister Kanishka Narayan today (Wednesday 24 September).

The investment is expected to support up to 40 British businesses in accelerating development of the tiny computer chips that are central to powering everything from smartphones and cars to medical devices and renewable energy systems.

With the UK semiconductor sector on track to grow by 75% by 2030, funding will be targeted at boosting areas where the UK is strongest, to turbocharge investment from around the world and compete in a global market worth hundreds of billions of pounds.

Companies to benefit from the Innovate UK fund include Paragraf Limited, which develops highly energy-efficient semiconductor devices using graphene technology. These advanced devices could help mobile phone batteries last longer and reduce energy consumption in cars, aircraft, and defence systems.

The technology underpins critical national infrastructure, from secure communications and defence systems to satellites and cyber security, making UK semiconductor innovation vital for national resilience.

Tech Minister, Kanishka Narayan said:

There is immense potential in the UK semiconductors sector. By investing in its growth, we will build on our country’s strengths, setting ourselves apart in a highly competitive market to unlock new skilled jobs at home and boost our economy.

We’re backing Britain’s businesses with the support they need to thrive, helping turn world-class research into major advancements such as more efficient mobile phones and TVs – making life easier for people right across the UK.

Meanwhile, Silicon Microgravity Limited will create matchbox-sized navigation devices that can work without relying on satellite signals. These devices will be used in wearable technology such as fitness trackers and smartwatches, as well as industrial robots, providing the UK with critical capabilities in navigation technology that strengthens our independence from international systems.

The fund will provide these companies with access to specialist, ultra-clean semiconductor manufacturing facilities, technical expertise, and business mentoring to help translate their innovations into commercial products.

These projects build on established UK strengths in cutting-edge semiconductor research and navigation technologies.

Across the UK, firms such as Pragmatic in Durham and Cambridge, Vishay and KLA in Newport, and Paragraf in Cambridgeshire are driving innovation in cutting edge technologies from flexible electronics and graphene-based devices to power semiconductors and advanced manufacturing. The UK’s largest tech company, Arm, is a global leader in chip design, demonstrating how UK expertise can drive the next generation of semiconductor breakthroughs.

Minister Narayan will announce the funding at the Microelectronics UK Conference, where international industry leaders and government representatives will gather to advance collaboration and innovation in this strategically important sector for our economies.

This investment will strengthen Britain’s capabilities in advanced manufacturing and clean energy technologies, while building the domestic semiconductor expertise essential for economic growth and national resilience in an increasingly digital world. It will directly support the government’s Industrial Strategy (https://www.gov.uk/government/publications/industrial-strategy) and Plan for Change (https://www.gov.uk/missions) mission to fuel economic growth.

The announcement reinforces the UK’s commitment to building sovereign capabilities in semiconductors, reducing vulnerability to supply chain disruptions whilst creating high-skilled jobs and export opportunities in a sector that will be fundamental to Britain’s future economic success.

Iain Mauchline, Head of Semiconductors, Innovate UK, said:

This funding being delivered by Innovate UK (through the Technology Missions Fund and DSIT) is for diverse projects, all developing cutting-edge semiconductor innovations that are fundamental for the UK and our frontier technology areas.

We’re pleased to provide support for these innovative companies who are using semiconductors as the key enabling technology to make a difference across a vast range of industries.

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