UK Semiconductor Sector Update — September 2026

Private investment

UK semiconductor companies raised approximately £237 million in the first eight months of 2026, already exceeding the full-year total for 2025. Bristol remains the leading hub by funding volume. Notable recent rounds include SCI Semiconductor's £5 million raise in September to scale production of its memory-safe ICENI chips.

Public support and policy delivery

A new £10 million Innovate UK fund was announced on 24 September 2026 to help UK businesses move next-generation semiconductor technologies from laboratory to market. The fund is expected to support up to 40 companies, with particular focus on areas of existing UK strength.

A separate £15 million Innovate UK competition opened on 1 September 2026 for semiconductor, AI hardware and advanced connectivity projects, combining grant support with private investment requirements.

Delivery of the £1.1 billion AI Hardware Plan (published June 2026) continues, including the AI Hardware Innovation Programme and expanded skills measures.

The UK Semiconductor Centre remains active as the national coordination body, with its London headquarters in King's Cross and ongoing work on infrastructure access, international partnerships and skills.

Sector baseline

The DSIT Semiconductor Sector Study 2026 remains the primary public reference. It identified approximately 705 companies active in the UK semiconductor ecosystem (295 dedicated semiconductor businesses and 408 diversified companies with semiconductor-related activity). Dedicated companies generated an estimated £10.6 billion in revenue and £7.5 billion in gross value added in 2025, employing roughly 16,350 people directly.

Outlook

Industry sentiment captured in the 2026 study remains positive, with a large majority of firms expecting growth over the following three years. Public investment, private funding momentum and continued focus on design, compound semiconductors, photonics and AI hardware continue to shape the near-term trajectory of the sector.