UK Semiconductor Catapult launches with AI

The UK Semiconductor Catapult has formally launched with a refocused mandate on AI hardware following government plans announced in June. The expanded remit comes amid a wider government push to increase the UK’s capabilities in the hardware underpinning artificial intelligence. It is part of the UK government’s £1.1bn AI Hardware Plan.

Capabilities and facilities

The Catapult provides access to specialised facilities and expert teams across multiple sites, supporting end-to-end semiconductor development from design to validation. It is the only place in the UK and one of the few in Europe with co-located, multidisciplinary teams spanning RF and microwave, photonics, power electronics, advanced packaging, and quantum.

Customers access specialist engineering expertise, laboratories and equipment through labs in Newport, Bristol, and Glasgow. The organisation works with start-ups, SMEs and large businesses. It provides access to UK semiconductor supply chain integration, design, system test and validation. The goal is to bridge research concepts and commercial reality.

In the first phase, the Catapult will establish an integration-ready capability and core silicon capabilities to enable customers to validate architectures and reduce early-stage risk. It works on complex engineering challenges to help reduce technical risk, validate new technologies and accelerate product development.

Technology sectors and applications

The organisation focuses on advanced packaging, power electronics, photonics, RF, and quantum technologies, with applications in AI, defence, data centres, clean energy, and transport. The strategic shift is driven by rapid technological evolution in high-growth areas.

The Catapult is working on key building blocks for AI systems. This includes solid state transformers for sustainable power in datacentres and advanced photonics for datacentre convergence. These technologies can replace inefficient copper-based systems. RF and beam forming are a focus for internal security and early failure detection, with potential dual-use applications such as drone communications.

The pivot aims to address demand for sovereign capabilities, IP protection, and robust supply chains. The Catapult leverages compound semiconductor expertise to enter silicon, bringing knowledge on power consumption and faster switching. It aims to choose the best market solutions rather than being tied to one technology.

Economic impact and government backing

Backed by the government’s £1.1bn AI Hardware Plan, the Catapult aims to retain economic value in the UK by helping companies scale technologies and strengthen domestic supply chains. Caroline O’Brien, the chief executive, said the organisation would seek to ensure more of the economic value generated by emerging semiconductor technologies remains in the UK.

"The market opportunity for the UK in AI hardware and defence is moving quickly," O'Brien said. She added that bringing together engineering expertise and specialist facilities would help companies reduce technical risks and accelerate products towards market.

The UK semiconductor industry generated an estimated £10.6bn in revenue in 2024/25, according to a government-commissioned study. The sector had 297 dedicated companies and employed around 16,350 people. The study identified AI as a major source of future opportunity, specifically in inference chips, photonic interconnects, advanced packaging and power electronics.

The AI Hardware Plan includes several financial commitments:

The primary goal is to help UK-based companies scale technologies and keep them within the UK to contribute to the economy and domestic ecosystem. In its second phase, the Semiconductor Catapult will demonstrate mature, system-level integration capability and clear routes to scale-up and small volume production.