The UK Semiconductor Centre (UKSC) has welcomed the government’s new plans to develop and scale AI-related semiconductor technologies in the UK.
The UK AI Hardware Plan, announced today by Liz Kendall MP, sets out how the government will support UK businesses to develop new AI hardware and deploy it at scale.
AI is one of the most transformative technologies to be developed since the Industrial Revolution and is currently one of the fastest growing industries in the global economy.
Semiconductors are fundamental to AI. They provide the computing power, connectivity and energy efficiency needed to develop, deploy and scale AI systems.
The AI Hardware Plan has been backed by new investment to reduce technological and capital risks and accelerate the adoption of UK-developed technologies.
The plan outlines several interventions covering research and innovation, public procurement, investment, and workforce development, creating a more holistic approach to capturing the AI opportunity.
The UKSC has been identified as a delivery partner in several of the plan’s interventions, including:
- A £120m AI Hardware Innovation Programme providing early-stage R&D support and grants, designed in partnership with UKRI
- Building a trusted network of manufacturing and foundry partners to give UK businesses a clear pathway to prototyping and production at scale
- Commencing a review of pathways into semiconductor and AI hardware careers to strengthen the pipeline of engineers entering the industry, to be completed in partnership with DWP and Skills England
The UK has world-leading expertise across the AI hardware stack, from semiconductor design and IP for next-generation compute architectures to photonics, advanced materials and compound semiconductors that enable power management, connectivity and sensing in both data centres and edge devices.
Home to Europe’s largest tech sector and VC market, the UK also has all the ingredients to translate fundamental research into commercially scaled technologies, backed by public funding and patient capital.
The role of the UKSC is to accelerate this process and ensure more semiconductor companies start, grow and scale in the UK. It does this by reducing friction between industry and investors, helping build a skilled future workforce, creating impactful and long-lasting international partnerships, and by increasing collaborations and connections across the UK ecosystem.
“We welcome the publication of the UK’s AI hardware plan and the interventions it sets out. Semiconductors are the foundation on which AI is built, and there is a significant opportunity for the UK to play a leading role in the rapid development and deployment of these technologies.
“The UK’s semiconductor strengths are well aligned to opportunities across the AI stack, and we are already seeing substantial private investment in UK semiconductor companies operating at the forefront of these technologies. It is encouraging to see the government matching that ambition with new investment and a clear focus on accelerating knowledge, skills, scale, and deployment.
“The UK Semiconductor Centre’s missions are closely aligned with both the ambition of the plan and the interventions it outlines. We look forward to working with government, industry and the wider ecosystem to help translate this vision into tangible outcomes for the UK.”
Andy McLean, Chief Executive Officer
Raj Gawera, Chief Operating Officer, UK Semiconductor Centre said: “It is encouraging to see a more holistic approach being taken to strengthening the UK's position in AI hardware. Success in this sector depends on getting several things right at the same time — innovation, skills, procurement, investment and commercialisation must all move forward in parallel if the UK is to build and maintain a genuine competitive edge.
“A targeted investment in innovation is also welcomed, as is a clear route for UK companies to integrate and test their technologies in a real-world environment. Pathways to prototyping, manufacturing and deployment will ease the journey from research to commercial-quality products by enabling UK start-ups to collaborate, integrate and mature their technologies more effectively.”
Alex Leadley, Director of Skills & Workforce, UK Semiconductor Centre said: “The Government’s commitment to skills funding in the AI Hardware Plan is a welcome and necessary step. Building UK strength in AI hardware and semiconductors will depend not only on investment in chips, compute and innovation, but on the people who can turn those capabilities into products, businesses and long-term economic value. Expanding technical pathways and growing the pipeline of specialist talent will be essential if the UK is to convert its research and design strengths into industrial scale, resilience and global competitiveness.”
Brian Robertson, Director of International Partnerships, UK Semiconductor Centre said: "The publication of the AI Hardware Plan, alongside AMD’s £2 billion investment in the UK, sends a strong signal about the UK’s ambition and growing attractiveness as a destination for AI and semiconductor innovation.
“The Plan is designed to create the conditions that enable more investments of this scale by strengthening the ecosystem around innovation, skills, investment, manufacturing access and international partnerships.
“The UK Semiconductor Centre will help deliver the Plan by developing a trusted network of manufacturing and foundry partners, addressing one of the most significant barriers facing innovative companies as they move from prototype to production.
"Realising the full potential of AI hardware will require sustained international collaboration. We look forward to strengthening partnerships across the global semiconductor ecosystem and helping UK companies access the expertise, manufacturing capability and pathways to market needed to grow, scale and compete internationally."
Martin O’Sullivan, Director of Investment, UK Semiconductor Centre said: “For semiconductor companies, the hardest challenge still is moving from promising technology to credible commercial outcomes.
“It’s encouraging that the plan recognises this scaling challenge with a focus on procurement and specialist hardware investment.
"The proposed new UK fund, led by Playground Capital, backed by up to £150m by the British Business Bank, is particularly significant and points to a more sophisticated model for backing UK semiconductor companies: specialist capital that understands the opportunity, can support ambitious hardware company-building, and can help UK semiconductor businesses move from technical promise to global scale.”
