New Wave of Semiconductor Start-Ups Join Government-Backed ChipStart Programme
A new cohort of semiconductor start-ups is set to benefit from ChipStart, the government-backed incubator programme driving the Plan for Change. Designed to help companies scale up, create high-skilled jobs, and boost economic growth, ChipStart provides crucial technical expertise and commercial support to UK-based semiconductor innovators.
Start-ups from the first two ChipStart cohorts are already on track to secure over £40 million in private investment, highlighting the strength of the UK’s semiconductor ecosystem.
Powering the UK’s Tech Economy
Semiconductors are the foundation of the UK’s tech economy, an industry currently worth £10 billion and projected to grow to £17 billion by 2030. These essential components power everything from smartphones and medical devices to electric vehicles and cutting-edge AI. With growing demand for smarter, more efficient technology, the UK is uniquely positioned to lead, supported by a world-class innovation ecosystem, leading academic institutions, and a strong entrepreneurial environment.
As the top destination in Europe for venture capital investment, with the lowest corporation tax in the G7, the UK continues to offer a competitive advantage for tech start-ups.
ChipStart: Fueling Innovation and Growth
Delivered by SiliconCatalyst.UK, a leading global start-up accelerator, ChipStart has been instrumental in helping early-stage semiconductor companies turn their ideas into real-world products. By providing expert mentorship, industry connections, and access to cutting-edge design tools, the programme supports high-potential companies in strengthening the UK’s position as a global leader in entrepreneurship.
Science Minister Lord Vallance emphasized the importance of this initiative, stating:
“The UK’s semiconductor industry is vibrant with innovation, and this third cohort shows just how much potential we have with many exciting start-ups.”
“This sector holds incredible promise, and with the right partnerships, it will lead us into a future of greater economic growth and technological advancement – a key pillar of our Plan for Change.”
Strengthening the UK’s Semiconductor Supply Chain
The momentum in the UK semiconductor industry continues to build following Vishay Intertechnology’s £250 million investment in the country’s largest semiconductor factory. Announced by the Chancellor during a visit to South Wales, this investment will bolster the UK’s domestic semiconductor supply chain, which is crucial for key industries such as automotive, renewable energy, and defence. South Wales is emerging as a key semiconductor cluster, reinforcing the UK’s competitive edge in advanced chip manufacturing.
Innovators Driving the Future
The success of past ChipStart participants underscores the programme’s impact. Qontrol, a University of Bristol spin-out from the second cohort, is developing precision control systems for photonics – the use of light to process data. Their technology has the potential to revolutionize the internet, delivering faster and more reliable connections, particularly benefiting rural communities.
This year’s cohort, backed by £1.1 million in government funding, includes innovative start-ups such as RX-Watt, which is pioneering battery-free sensors powered by safe microwave signals. This technology could transform industries reliant on real-time monitoring, ensuring critical goods like vaccines are stored at optimal temperatures while helping manufacturers prevent costly equipment failures.
From the second cohort, KuasaSemi, a Cornwall-based start-up, is transforming semiconductor design for electric vehicles and renewable energy. By developing advanced tools for new materials, they are enabling the creation of more efficient power devices, leading to faster-charging, longer-lasting electric vehicles and accelerating the shift to sustainable energy solutions.
Sean Redmond, Silicon Catalyst UK, highlighted the programme’s growing success:
“We have been delighted with the high quality of new semiconductor startup applications we received for our third cohort of ChipStart from across the UK semiconductor clusters.”
“Our now proven incubation process, which provides no-cost design tools and chip manufacturing, will help these competitively selected companies attract the right private investment at the right time, launching them onto the global semiconductor stage.”
“With the help of our experienced semiconductor executive advisors, including co-founders of Arm, we can help these young companies make great decisions and build the next generation of UK semiconductor unicorns. The next ten years of semiconductors will be a race to a £2 trillion industry, and these new UK scale-ups will be in pole position to win that race.”
Advancing Semiconductor Technologies
Wave Photonics, another standout from the first cohort, is leading the development of integrated photonics – circuits that use light instead of electricity. Their cutting-edge technology is paving the way for energy-efficient AI communications, advanced healthcare sensors, and quantum technologies.
James Lee, co-founder of Wave Photonics, praised the programme:
“ChipStart was fantastic preparation for raising and deploying our seed round to advance our approach to photonics design for quantum technologies, sensing, and data centre applications.”
“Beyond training and mentorship, ChipStart connects start-ups directly into the UK semiconductor ecosystem and offers invaluable lessons from the successes of previous generations of UK semiconductor companies.”
The Future of UK Semiconductors
With companies from the first two cohorts already on track to raise over £40 million in private investment, the success of ChipStart underscores the UK’s strength in semiconductor innovation. By fostering cutting-edge technologies and equipping start-ups with the resources they need to succeed, the government is ensuring the UK remains a global leader in semiconductor development, job creation, and technological advancement.
