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Semiconductor funding opportunities

UK AI Hardware Plan

As part of the UK Government’s AI Hardware Plan, a number of funding opportunities are currently available or upcoming for UK semiconductor companies.

The AI Hardware Plan sets out the Government’s approach to strengthening the UK’s capabilities in the hardware that underpins artificial intelligence. It aims to build on UK strengths in areas such as semiconductor design, advanced materials and emerging computing technologies, while supporting the development, scaling and commercialisation of new AI hardware technologies and strengthening the infrastructure, skills and supply chains needed to bring them to market.

Explore the opportunities below for more information on each competition, including key dates, eligibility and how to apply.

Live funding calls

 

For semiconductor start-ups and SMEs

 

The Sovereign AI Research and Development (R&D) Procurement Scheme is deliberately designed to enable innovative start-ups and SMEs to participate in government procurement. It aims to procure novel AI capabilities that address government challenges and deliver public benefit - advancing the Sovereign AI Fund's mission to build sovereign capability across its focus areas and grow strategically important AI companies in the UK.

 

Competition funder: SovereignAI

Total funding available: £100m

 

  • Scope: Sovereign AI procures the development of novel AI capabilities that address four challenges:
    • AI for a more productive NHS
    • Integrate AI at pace across Defence mission environments
    • Increase compute efficiency - this is of most relevance to the semiconductor industry and is focused on improving the performance, interoperability, observability and cost-effectiveness of the data centres/HPCs in the UK AI Research Resource (AIRR), including support for the future heterogeneous AI supercomputer.

    • Enabling safe AI agent adoption

       

 

  • Contract value: The minimum contract value is £250,000 and the maximum is £10 million per project. SovereignAI anticipates that most contracts will be around £1 million to 3 million. 
  • Approved supplier list: An initial assessment is performed to check you meet the scheme’s eligibility criteria.
  • Competition opening dates: Proposals are assessed in competition batches every two months. Once you are an Approved Supplier, you can submit your Full Application at any time, and it will be assessed after the next competition deadline. 
    • Batch 1: Submit your proposal by 16 October 2026 to receive an outcome on 13 November 2026. 
    • Batch 2: Submit your proposal by 31 December 2026 to receive an outcome on 29 January 2027. 
    • Batch 3: Submit your proposal by 26 February 2027 to receive an outcome on 31 March 2027. 

 

Batch 1

 

To be eligible to apply for Batch 1, semiconductor companies must apply to be on the approved supplier list by Friday 2 October 2026. Fill in the form here.

Upcoming funding calls

 

For start-ups, SMEs, Tier 1s, and academic institutions

 

The AI Hardware Challenge, funded through UKRI, is being designed to support start-ups, SMEs and researchers through stage-gated R&D grants from feasibility through to prototyping, helping address the particular challenges faced by hardware innovators. 

 

More information about the project and full details on how to apply will be posted here when the competition is launched.

 

Expected launch date: October 2026