17 Mar 2025

Event round-up: Roundtable: UK Plan for Chips: Turning strategy into action

On Monday the 17th of February, techUK hosted a roundtable discussion with major stakeholders within the semiconductor sector to launch our latest report: the UK Plan for Chips: a new techUK blueprint. This event brought together leaders in the semiconductor ecosystem, with expertise in scaleups, public and private investment, skills, academia and R&D.

This was a closed roundtable session and all findings from this discussion have been anonymised.

Roundtable: UK Plan for Chips: Turning Strategy into action

Following our opening keynotes, a roundtable of sector leaders explored how we can turn these key recommendations into tangible next steps. Please find a summary of this conversation below.

Challenges in access to finance

Attendees highlighted that the capital-intensive nature of semiconductor R&D meant that many UK semiconductor companies face significantly high capital costs. As companies in this sector scale, these capital demands also intensify, making it increasingly difficult to attract and maintain the necessary funding. As techUK’s UK Plan for Chips states, 41% of all UK companies operating in this space are micro (1-9 employees), making this a significant issue for the sector. When asked whether attendees would accept international investment, one founder responded that “It’s the only option”, especially if a company requires onshoring some part of the fabrication process.

The National Wealth Fund (NWF) was seen as a promising source of long-term capital for the sector, despite its funding minimum of £25 million. To facilitate further growth, capitalising on previous success seen through government-backed investments into the semiconductor sector, some attendees believed public institutions may need to expand funding parameters or explore other sources of capital. Ensuring that projects receive adequate and long-term funding is crucial to advancing UK semiconductor capabilities, particularly in emerging fields like quantum computing and photonics where the UK has international leadership opportunities.

Access to semiconductor infrastructure

Many attendees emphasised their support for the UK to enhance its semiconductor capabilities, but to greater pursue this, access to infrastructure must be prioritised. Multiple attendees mentioned difficulties in accessing the required facilities for semiconductor prototyping and manufacturing. In part, this was believed to be a result of insufficient investment. This challenge is exacerbated by the substantial upfront investment in facilities, materials, and technology to stay relevant, especially in areas like photonics and nanomaterials. The need for this to be addressed is especially potent due to semiconductors' key role in national security, namely through reinforcing critical infrastructure, defence and cyber resilience.

As part of building pilot lines in the UK, there is an opportunity to incorporate cutting-edge technologies, such as photonics and nanomaterials, into the semiconductor manufacturing process. This integration will provide the UK with a competitive edge in the development of next-generation chips and systems. It is this reason that the UK Plan for Chips recommends to government the establishment of an open access foundry, with pilot lines supporting materials in multiple technologies

Successful prototypes can go a long way in reassuring investors that a company’s technology is viable and ready for commercialisation. These prototypes can serve as visible proof to some investors that the company has the capability to scale and meet market demands, making it easier to secure additional funding.

For foundries to be successful, they must be aligned with both prototyping and the specific needs of end-users, particularly in sectors like defense, telecommunications, and healthcare. Moreover, the use of advanced materials in the scaling process, such as graphene or new semiconductors, is essential for maintaining a competitive advantage.

How should the Government apportion support going forward?

Government funding should be more “at the coalface"- namely being more localised and sector-specific to effectively address the challenges faced by the semiconductor industry. Founders have emphasised that earlier, more targeted investments in R&D would have greatly benefited startups. Direct support that considers the unique needs of the sector will help alleviate some of the capital strain and encourage growth.

To foster long-term growth, there is a need for proactive government support based on horizon scanning and advanced designs. One attendee commented that current support initiatives can be based on the needs of current technology, with more consideration needed for how to proactively prepare for future requirements. Such support could better prepare UK semiconductor companies to innovate, anticipate future market needs, and create the infrastructure necessary for success in a rapidly changing global market.

Building and maintaining semiconductor clusters is essential for fostering collaboration, innovation, and scaling up production capabilities. These clusters can help bring together R&D, manufacturing, and commercialisation activities, making it easier for firms to grow and attract the necessary investment.

Finally, an attendee commented on the mindset of UK public investment, likening it to DARPA in the US, who accept that some investment may not pay off.

Ecosystem support

In order to support the scaling process, ChipStart was mentioned as a fantastic initiative, turning an initial government investment of £600k into £20m of private sector investment. An attendee who was part of this incubator programme commented that this programme should be built upon to be even more effective, perhaps with a funding element and better capitalising on international partnerships. Fulfilling this objective could be possible through the National Semiconductor Centre.

To stimulate growth in the semiconductor sector, the UK government could consider offering more generous tax incentives and guarantees. These financial tools could help mitigate some of the risks associated with large-scale investments in semiconductor manufacturing, making it easier for both domestic and international investors to commit.

Academic-led clusters are an important source of innovation, but they face significant challenges in commercialising research. A better framework for translating academic discoveries into market-ready products and services to help bridge the gap is needed.

One attendee believed that the life sciences sector provides a successful example for the semiconductor industry, demonstrating how significant government funding and tax support can help create a thriving ecosystem. Emulating this model could facilitate the growth of semiconductor capabilities, particularly in areas like healthcare and advanced computing.

The growth of the UK semiconductor sector can not happen without a strong pipeline of talent, including upskilling, academic training and attracting international skills. This challenge was felt across different regions and sub-sectors and was mentioned by many attendees as an area requiring further industry and government focus. The development of a skilled workforce, including clean room technicians, wafer fab staff, and engineers, is crucial for the success of the semiconductor industry in the UK. Governmental backing for educational programs, especially at higher levels, will help fill the skills gap and ensure the industry has the talent necessary for long-term growth.

While international talent is valuable and often highly sought after in the semiconductor sector, the cost of bringing skilled workers to the UK can be burdensome. Addressing the barriers to attracting and retaining international talent will be key to filling critical skill gaps and ensuring that the sector has the expertise required to scale effectively.

Finally, the discussion ended with a reemphasis on a sense of urgency: the time for government action is now.

Where next?

techUK is incredibly grateful to all our attendees for making this session so productive. As a leading voice for the UK Semiconductor industry, techUK will be continuing to press forward in its advocacy for the UK semiconductor industry.

To view our full UK Plan for Chips: a new techUK Blueprint, please click here.

If you are interested in discussing this paper, please reach out to [email protected]

techUK Semiconductor Hub