Chip design and semiconductor IP
Companies that design chips, or license reusable design blocks and processor architectures to others, without owning fabrication plants. This is the UK's most internationally significant segment and the reason UK-originated designs appear in devices manufactured worldwide.
Fabless, semiconductor IP, EDA, chip architecture
Compound semiconductors
Businesses working with materials such as gallium nitride, silicon carbide and gallium arsenide, which outperform silicon in power handling, high-frequency operation and light emission. South Wales hosts what Government analysis describes as the world's first compound semiconductor cluster.
GaN, SiC, GaAs, epitaxy, power electronics, RF
Photonics and integrated photonics
Companies building components that generate, guide and detect light on semiconductor platforms, used in data communications, sensing, quantum technologies and increasingly in AI interconnect.
Silicon photonics, PICs, optical interconnect
Specialist fabrication and foundry services
Smaller-scale wafer processing, pilot lines and open-access cleanrooms serving prototyping and specialist production, rather than leading-edge high-volume logic manufacture.
Foundry, wafer, cleanroom, MPW
Advanced packaging, assembly and test
Businesses that turn finished wafers into working, reliable products — dicing, packaging, interconnection and testing. Packaging has become a competitive frontier as gains from shrinking transistors slow.
Advanced packaging, chiplets, heterogeneous integration
Materials, equipment and metrology
Suppliers of substrates, process chemicals, deposition and characterisation tooling, and the measurement capability that manufacturing depends on. Much of this activity is upstream and research-adjacent.
Substrates, deposition, characterisation, metrology
AI hardware and novel compute
Companies developing accelerators, inference chips, neuromorphic devices and memristive architectures aimed at the compute demands of artificial intelligence — the segment most directly addressed by current Government policy.
Accelerator, inference, neuromorphic, memristor
Diversified electronics and systems companies
Firms whose primary business is elsewhere — aerospace, defence, automotive, medical devices, communications — but which carry meaningful in-house semiconductor design or manufacturing capability. The 2026 study counts 408 such companies.
Diversified, systems integration, embedded