Industry body techUK has published an updated blueprint urging the UK Government to accelerate the delivery of its National Semiconductor Strategy.
The report, an evolution of its 2022 UK Plan for Chips, highlights the critical need for targeted investment, international collaboration, and a stronger ecosystem to cement the UK’s position in the global semiconductor industry.
With the semiconductor market expected to reach $1 trillion by 2030, techUK warns that incremental progress will not be enough to secure the UK’s role in this vital sector. While the government’s National Semiconductor Strategy, launched in 2023, set out a clear vision, techUK argues that more decisive action is needed to translate ambition into tangible outcomes.
The report identifies three key missions to strengthen the UK’s semiconductor industry:
- Building on existing strengths – the UK has world-class expertise in chip design, intellectual property (IP), research, and compound semiconductors. However, to establish global leadership, these strengths must be scaled through targeted policies and financial backing
- Expanding investment opportunities – despite having the world’s third-largest tech sector, UK semiconductor startups often struggle to attract large-scale private investment. A more dynamic investment ecosystem is needed to drive innovation and commercialisation
- Forging strategic global partnerships – the semiconductor supply chain is deeply interconnected, and the UK must strengthen ties with key international partners to secure access to markets, joint research opportunities, and funding
To support these missions, techUK has set out a six-point plan for delivery, which includes retaining the UK’s leadership in chip design, supporting applied research and manufacturing, and incentivising investment into new growth areas. Other priorities include improving access to markets and capital, developing the necessary skills pipeline, and reinforcing the sector through international collaborations.
techUK is calling for urgent government action to turn strategy into implementation, warning that without swift and targeted measures, the UK risks falling behind in the global race for semiconductor leadership.
Laura Foster, Associate Director for Technology and Innovation, techUK said: “The UK has a unique opportunity to lead in the global semiconductor landscape, but success will require bold action and sustained commitment. By accelerating the implementation of the National Semiconductor Strategy, we can unlock investment, foster innovation, and strengthen our position in this critical industry. We must act at pace to secure the UK’s semiconductor future and as such our technological and economic resilience.”
Richard Price, CTO, Pragmatic Semiconductor, said: “techUK rightly emphasises the urgent need to accelerate the UK’s National Semiconductor Strategy. Semiconductors are the backbone of modern technology, and securing the UK’s role in this fast-growing industry is vital for economic growth, innovation, and resilience.
“Core value creation lies in semiconductor manufacturing, which has significant potential to boost the UK’s economy. Europe and the US are already investing heavily; competitive incentives in areas such as capital investment are urgently needed to level the playing field.
“The UK government must act on this report, focusing support on fast-growing businesses to unlock the full potential of the sector and stay competitive in a global market poised to reach $1 trillion by 2030.”
Click here to download the full report.
