The UK semiconductor resource
The UK semiconductor industry, in plain figures.
Semiconductor.co.uk is an independent reference on the companies, regional clusters, investment and Government policy that make up the UK chip sector — grounded in the 2026 Government sector study and cited throughout.
Last reviewed: 21 August 2026
How big is the UK semiconductor industry?
The UK semiconductor sector comprises around 705 companies, of which 295 are dedicated semiconductor businesses and 408 are diversified companies with semiconductor-related activity. Dedicated companies are estimated to have generated approximately £10.6 billion in revenue and £7.5 billion in gross value added in 2025, employing roughly 16,350 people directly and supporting about 26,850 high-value jobs across the wider economy.
The sector's distinctive strength is intellectual: chip design, semiconductor IP, compound semiconductors, photonics and research-led device science, rather than high-volume leading-edge fabrication. Activity is concentrated in 12 regional clusters spanning all four UK nations.
Headline figures
DSIT Semiconductor Sector Study 2026
- 705
- UK semiconductor companies identified by the 2026 Government study
- 295 dedicated semiconductor companies and 408 diversified companies, up from 623 at the 2024 baseline.
- £10.6bn
- Estimated revenue generated by dedicated UK semiconductor companies in 2025
- Based on 2024/25 company data, including dedicated companies newly identified since the 2024 baseline study.
- £7.5bn
- Estimated gross value added (GVA) generated by dedicated semiconductor companies
- Including newly identified dedicated companies; a 9% increase on the comparable baseline measure.
- 16,350
- Approximate direct employment within dedicated semiconductor companies
- 2025 estimate, approximately 9% higher on a like-for-like basis than the 2024 baseline.
- 26,850
- Approximate high-value jobs supported across the wider economy
- Total employment estimated to be supported by dedicated UK semiconductor companies.
- 12
- Recognised regional semiconductor clusters
- Spanning design strength and manufacturing, materials and research depth across all four UK nations.
Industry sentiment
83% of firms surveyed for the 2026 study expected to grow over the following three years, and 47% expected rapid growth of more than 20% a year — up from 38% in the 2024 baseline. Global semiconductor sales reached $796bn in 2025, driven primarily by demand for AI compute.
The £1.1 billion UK AI Hardware Plan
Published alongside the 2026 sector study, the UK AI Hardware Plan sets out how the Government intends to build capability in the chips underpinning artificial intelligence, structured around innovation, skills, procurement and investment.
Procurement
£750m
Heterogeneous AI supercomputer for the AI Research Resource (AIRR)
A single system able to integrate different types of advanced compute, including novel AI architectures and, over time, quantum computing, used on real research workloads.
Procurement
£400m
Procurement opportunity for specialised chips
Sits within the £750m AIRR supercomputer programme rather than being additional to it.
Procurement
£150m
Advance Market Commitment for next-generation inference chips
An expanded Advance Market Commitment, up from £100m announced previously, to purchase novel high-performance inference chips. Forms part of the £400m specialised chip procurement.
Where UK semiconductor activity happens
The 2026 study identifies 12 regional clusters, each with a distinct specialism — from compound semiconductors in South Wales to silicon photonics in Southampton and design depth around Cambridge.
East of England (Cambridge)
Design, IP and semiconductor physics
London
National coordination, fabless design and research spin-outs
North East England
Compound semiconductors and advanced materials electronics
Northern Ireland
Integrated photonics, nano-manufacturing and hardware security
North West England (Manchester)
Upstream materials science and characterisation
Scotland (Edinburgh)
Fabrication capability and emerging device science
Continue reading
UK semiconductor companies
How the ecosystem is structured, from fabless design and semiconductor IP to compound semiconductors and photonics.
Semiconductor glossary
Plain-English definitions of the terminology used across the industry and in Government policy.
Primary sources
The Government publications and institutional resources behind every figure on this site.
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