Semiconductors: Manufacturing Industries

The UK is well positioned to take advantage of the increased demand for AI hardware created by the growth in the AI industry. The AI Hardware Plan is capitalising on this opportunity, and by increasing access to capital, public procurement opportunities, and targeted support, we are strengthening the incentives for companies to anchor and scale in the UK, and improving routes from innovation to deployment, including through procurement and investment.

This will support the creation of a critical mass of talent and investment, secure Britain’s future capability and strategic advantage in the chips and semiconductor technologies that underpin AI and anchor a growing share of high-value AI hardware activity and industrial capability across the UK. The Plan also supports opportunities for global collaboration, with the UK an open, attractive partner in global supply chains, and will ensure that both UK and international firms can develop and scale in the UK.

A recent study estimated that in a high growth scenario, jobs supported by the UK semiconductor sector could reach as high as 40,000 by 2030, up from 26,000 in 2025; the AI Hardware Plan is providing the conditions for this stronger sector growth. To support the development of this critical mass of talent, the Plan announced an increase to £80m of investment in semiconductor and AI hardware skills, which will support the training of thousands of new people.

In regards to specific elements such as the new national AI supercomputer, estimates are ongoing and dependent on a number of factors such as the energy efficiency of novel AI inference chips, which promise to significantly reduce the energy consumption of the hardware used.