- A new independent institute will be tasked with building on the Government’s £1bn strategy to grow the semiconductor sector
- With independence from the government, the institute will strengthen the voice of industry
- The new body will be a central point of contact for promoting the sector to investors and attracting foreign investment in the UK’s research expertise
A brand new, independent UK semiconductor institute will bring together government, universities and the private sector for the first time to support key components of the government’s £1 billion semiconductor strategy to grow the sector.
Our goal in the future is to establish the Institute as an independent organization whose mission is to ensure that chip researchers have the tools and infrastructure they need to advance their work in these priority areas and their innovations, subject to final decision to be converted into market-ready products.
As further international semiconductor agreements are concluded, the Institute will also act as a coordinated contact point for technology companies and international partners wishing to work with the UK semiconductor sector to drive innovation, research and commercialization.
Technology Minister Saqib Bhatti said:
Semiconductors are at the heart of all the technologies that make our economy run, and our strategy was to grow the sector and make it resilient by focusing on what the UK chip sector does best.
Building on the early success of the strategy, the UK Semiconductor Institute will unite the semiconductor sector to focus our talented researchers to secure our status at the forefront of semiconductor science. This is a hugely important milestone on our journey to becoming a science and technology superpower by 2030.
Building on a focus of the Semiconductor Advisory Board, the Institute will also bring together industry to strengthen the expertise needed to grow the sector. This will build on £4.8 million of support for 11 skills programs across the UK announced earlier this year.
A year after the launch of the National Semiconductor Strategy, it was announced that the Institute would set its key areas of focus in line with the areas set out in the strategy, which identified the UK’s strengths in composite chips, design and research and development.
Since launching the semiconductor strategy, the government has launched ChipStart, a pilot incubator for start-ups that provides them with the technical and business help they need to bring new products to market. It has also invested £22 million in two innovation and knowledge centers in Bristol and Southampton to bring new British chip technologies to the global market.
The UK has also secured access to Horizon Europe’s €1.3 billion Chips Joint Undertaking and ensured the UK Infrastructure Bank can invest its £22 billion financial capacity in semiconductor manufacturers. This enabled the bank to contribute £60 million to Pragmatic’s latest funding round.
Following extensive industry engagement, the establishment of the UK Semiconductor Institute is an important step towards implementing the UK Semiconductor Infrastructure Initiative announced in the National Semiconductor Strategy in 2023. It was a key recommendation in a report commissioned by DSIT from the Institute for Manufacturing and is supported by the Semiconductor Advisory Panel.
Jalal Bagherli, co-chair of the Semiconductor Advisory Panel, said:
I believe that the establishment of the Semiconductor Institute is a very positive step in further developing the UK’s semiconductor strategy. The institute concept played an important role in the IFM advisory study and is seen as an effective means of providing long-term impetus to our industry, helping to engage international partners and attracting investment into the sector.
Martin McHugh, CEO at CSA Catapult said:
We are pleased to be launching the UK Semiconductor Institute, which will bring together government, academia and industry to help secure areas of world-leading strength in the semiconductor technologies of the future.
The UK Semiconductor Institute will ensure that the UK has a strategic and coordinated approach to developing new technologies, improving skills and capitalising on areas where the UK has existing strengths.
One of these strengths is compound semiconductors and we look forward to working closely with the UK Semiconductor Institute to advance the further development of this critical technology, which will accelerate our path to Net Zero through electrification and deliver a secure and resilient telecommunications network for the future.
David Moore, CEO from Pragmatic said:
We are pleased to close the largest European semiconductor venture capitalization in December 2023, co-led by the UK Infrastructure Bank and M&G, with 70% of the funding round coming from UK investors. This funding will accelerate the further expansion of our manufacturing capacity in the North East of England, increasing the volume of billions of flexible integrated circuits (FlexICs) to tens of billions per year.
As a UK-based semiconductor company serving a global customer base, we welcome efforts to provide access to technology to support the growth of emerging companies, drive expansion of the industry’s talent pool and promote international partnerships. The Institute represents a significant opportunity to build new infrastructure to support areas where the UK can lead on the global stage, including advanced materials and disruptive new approaches to large-scale semiconductor manufacturing.
Julian David, CEO from techUK, said:
The creation of a UK Semiconductor Institute is welcomed by techUK and other members of the Chips Coalition, including Global Tech Advocates and TechWorks. We have worked with the UK Government to develop the National Semiconductor Strategy and we look forward to putting this strategy into action.
We are confident that this institute will act as an authoritative and empowered body. By bringing together government, universities and the private sector, the institute will play a crucial role in progress Research and DevelopmentCompetence development and promotion of international cooperation. This collaboration will ensure a robust and innovative future for the UK semiconductor landscape.
The Chips Coalition looks forward to continuing to work with the Government on this endeavour and witnessing the positive impact this institute will have on the growth of the UK.
Charlie Sturman, Techworks, said:
Semiconductor technology is the single most important component of all transformative technologies such as AI, telecommunications, quantum technology and electrification. As economic success becomes increasingly dependent on semiconductors, it is vital that the UK develops a long-term vision and strategy, from exploring commercial products to supporting partnerships with international partners, to help homegrown innovations become global success stories let. As the UK trade association for deep tech and semiconductors, Techworks is pleased to support the establishment of this institute as a crucial step in this direction.
Janet Collyer, Senior Independent Director at EnSilica, Independent NED at the Aerospace Technology Institute, Chairman of the Board at Quantum Dice and Machine Discovery, said:
I am delighted to support the independent UK Semiconductor Institute. It will be a welcome point of support for UK semiconductor companies at all stages of their growth.
This capability is particularly important in the key areas of attracting diverse talent to the sector, accelerating manufacturing turnover by shortening the transition from laboratory innovation to serial production – “lab to fab” – and ensuring ongoing investment on time for timely national expansion Scale-up phase.