A new initiative to support the UK’s semiconductor industry has been introduced, signalling a strategic shift by science minister Patrick Vallance.
- Previously sceptical, Vallance has endorsed £720k average grants for 16 semiconductor projects, aiming to boost innovation.
- Vallance’s earlier comments criticised £1m funding as insufficient, suggesting firms would struggle without more capital.
- The G7 Semiconductors forum kick-off coincides with the funding, fostering global discussion on industry challenges.
- The UK semiconductor sector, valued at £10bn, could significantly impact economic growth and reach £17bn by 2030.
In a notable shift from previous remarks, UK science minister Patrick Vallance has thrown his support behind a new scheme to provide small grants to semiconductor companies. While speaking at London Tech Week, Vallance had initially expressed concerns, stating that start-ups securing just £1 million were essentially ‘in trouble’, facing ongoing fundraising battles. However, he now highlights the scheme’s potential to elevate small firms into industry leaders, strengthening the sector to drive economic growth.
This new government initiative awards 16 semiconductor projects a share of £11.5 million, equating to an average of £720,000 per project. The diverse projects include Vector Photonics Limited’s work with the University of Glasgow to advance the use of gallium nitride in blue light lasers, which may enhance everyday technology. Another project led by Quantum Advanced Solutions Ltd, in conjunction with the University of Cambridge, focuses on developing shortwave infrared sensors, aiming to improve visibility in critical sectors like defence, particularly under challenging conditions.
The scheme’s unveiling aligns with the inaugural forum of the G7 Semiconductors Point of Contact group, held at leading UK chip firm Arm’s headquarters in Cambridge. This forum gathers various stakeholders to deliberate on key issues such as early-stage innovation and sustainability within the semiconductor industry, reinforcing the UK’s commitment to sectoral advancement.
The UK semiconductor sector, comprising over 200 companies and valued at £10 billion, stands as a pivotal technology player. Predictions by Perspective Economics suggest potential growth to £17 billion by 2030, showcasing the importance of continued investment and innovation. Iain Mauchline of Innovate UK emphasised that semiconductors are crucial enablers for the UK’s technological aspirations, underscoring the depth and strength of the nation’s semiconductor ecosystem.
This strategic support initiative marks a turning point for the UK’s semiconductor industry, fostering potential for significant economic impact.
