The UK Semiconductor Centre (UKSC) has published a new report detailing the findings from a series of engagement events that took place at the end of 2025.
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The new report published today outlines the regional and national challenges facing the UK semiconductor industry.
UK semiconductor companies said a lack of access to finance and infrastructure is restricting their ability to scale, preventing the industry from fulfilling its potential and competing globally.
Industry representatives from across the UK consistently highlighted shortages of patient capital, a lack of specialist investor knowledge in semiconductors, and complex public and private funding pathways that are often poorly aligned.
Access to infrastructure — including open-access facilities and pilot lines — was also identified as a significant barrier to growth.
Addressing the scale-up challenge
These insights echo findings from a recent House of Lords committee report, which warned that a failure to scale science and technology companies is causing the UK economy to “bleed to death”.
The new report draws on insights gathered during a series of UKSC-led workshops held over a three-month period at the end of 2025.
Across 10 locations, the UKSC brought together more than 450 representatives from businesses, universities, local and national government, non-profits, learned societies and trade bodies.
The workshops were designed to gather feedback on the five missions the UKSC is working towards: business scale-up; international partnerships; a national strategic roadmap; ecosystem advocacy and promotion; and workforce and skills development.
At each workshop, participants were asked to vote on the mission they believed was the most important national and regional priority.
In response to the scale-up challenge, the UKSC intends to mobilise a combination of public and private capital at each stage of growth and grow a network of investors who are confident in semiconductor business models and opportunities, whether they have invested in semiconductors before or not.
The UKSC will also undertake an extensive ecosystem mapping exercise so UK organisations can find partners, facilities, infrastructure and support quickly that will enable them to scale.
Plugging the skills gap
Workforce and skills development was also highlighted as a significant national challenge, with participants describing a fragile talent pipeline that is not keeping pace with the rapid growth of the semiconductor industry.
It is estimated that nearly 40% of the UK semiconductor workforce will reach retirement age within the next 15 years, potentially leaving a shortfall of more than 10,000 roles.
Participants highlighted limited exposure to electronics and semiconductor careers among schoolchildren, gaps in apprenticeship and technician pathways, and the need for greater diversity across the sector. Stronger links between education and industry were also identified as essential to ensure students and graduates are equipped with work-ready skills.
Maximising opportunites, growth and reach
The UKSC is a strategic hub established to connect, represent and promote the UK semiconductor industry in the UK and internationally. Its goal is to unlock the full potential of the UK semiconductor sector by maximising opportunities, growth and reach.
The UKSC will use the findings of the report to inform future activity, workstreams, analysis and engagement across the ecosystem.
Semiconductors underpin almost all modern technology — from AI and data centres to electrification, connectivity, healthcare and defence. As the global market enters a major growth cycle driven by AI compute and electrification, there is a significant opportunity for the UK to seize.
The UK has globally respected capability across research, advanced materials, compound semiconductors, power electronics, photonics and semiconductor design.
“This report provides invaluable insight into the key challenges facing our industry, alongside a wealth of constructive ideas on how the UK Semiconductor Centre can help address them. Participants consistently viewed the UKSC as coordinating effort, advocating on behalf of the sector, and providing a unified voice.
“Across the ten workshops, it was extremely encouraging to see the passion and commitment of people working across the sector, and a shared determination to see the UK succeed as a globally recognised semiconductor nation.
“With the rapid growth of AI, electrification and quantum technologies, we are facing a once-in-a-generation opportunity that the UK can absolutely capitalise on and place itself at the centre of these revolutionary technologies.
“This report will inform UKSC’s action plan and act as a springboard to help build a stronger, more connected ecosystem that is ready to compete on the world stage.”
Raj Gawera, Chief Operating Officer, UK Semiconductor Centre
