Government backs next wave of semiconductor start-ups to scale up growth

New wave of semiconductor start-ups will join ChipStart, a government-backed incubator programme driving our Plan for Change by helping companies scale up, create jobs, and boost growth.

ChipStart provides technical expertise and commercial support to help UK-based semiconductor innovators grow and create high-skilled jobs. Companies from the first two cohorts are already on track to raise over £40 million in private investment.

Semiconductors are a cornerstone of the UK’s tech economy, with the sector already worth £10 billion and projected to grow up to £17 billion by 2030. They power the technology we rely on daily, from smartphones and medical devices to electric cars and cutting-edge AI. They control the flow of electricity in electronic systems and as demand for smarter, more efficient tech grows, the UK is well placed to lead, backed by a world-class innovation ecosystem and a thriving entrepreneurial environment. The UK is the number one country in Europe for venture capital investment, has the lowest corporation tax in the G7, and benefits from a highly skilled workforce and leading academic institutions.

ChipStart – delivered by SiliconCatalyst.UK, leading global start-up accelerator – has successfully helped early-stage semiconductor companies turn their ideas into real-world products by providing expert mentorship, industry connections, and access to cutting-edge design tools.

As part of our Plan for Change, and the wider Industrial Strategy we are supporting these high-potential companies to reinforce the UK’s position as a global leader in entrepreneurship, creating the conditions for the next generation of world-changing technologies to thrive and driving growth in communities across the UK.

Science Minister, Lord Vallance said

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.

This announcement builds on the UK’s growing momentum in semiconductors, following Vishay Intertechnology’s plans to invest £250 million in the UK’s largest semiconductor factory. Announced by the Chancellor during a visit to South Wales yesterday, this investment will strengthen the UK’s domestic semiconductor supply chain – critical for industries like automotive, renewable energy, and defence. With South Wales emerging as a key semiconductor cluster, this investment underscores the UK’s competitive advantage in advanced chip manufacturing.

From the successful second cohort, Qontrol, a University of Bristol spin-out, is developing technology that could transform the internet as we know it. Their precision control systems for photonics – the use of light to process data – could lead to faster, more reliable internet connections, helping to bring high-speed connectivity to rural communities and build the networks needed for next-generation digital services.

This year’s cohort – backed by £1.1 million of government funding – includes RX-Watt, a company pioneering battery-free sensors that can be wirelessly powered using safe microwave signals. Their technology could save industries time and money where they depend on monitoring products and goods in real-time – helping manufacturers prevent costly equipment failures and ensuring critical goods like vaccines are stored at the right temperature throughout the supply chain.

Companies from the first two ChipStart cohorts are already on track to raise over £40 million in private investment, proving the strength of UK semiconductor start-ups and the impressive return on investment associated with government backing.

Another example from the second cohort is KuasaSemi, a Cornwall-based company, is revolutionising the design of semiconductors used in electric vehicles and renewable energy. By developing advanced computer tools to work with new types of materials, they are enabling the creation of faster, more efficient power devices. This means electric cars could charge faster, run longer, and perform better – helping to accelerate the shift to greener, more sustainable energy solutions.

Sean Redmond, Silicon Catalyst UK said

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, that 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, which includes 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. These new UK scale-ups will be in pole position to win that race.

Wave Photonics, another successful company from the first cohort, is pioneering design technology to accelerate the development and mass production of integrated photonics – circuits that use light instead of electricity. These innovations are paving the way for energy-efficient AI communications, next-generation healthcare sensors, quantum technologies, and more.

James Lee, co-founder of Wave Photonics said

ChipStart was fantastic preparation for raising and deploying our seed round to deploy our new approach to photonics design for quantum technologies, sensing and datacentre applications.

As well as training and connection to mentors, ChipStart helps you directly plug into the UK semiconductor ecosystem and learn from the successes of the previous generation of UK semiconductor startups.

Notes to editors

Full list of the winning cohort.

1. Chipletti
2. Ethicronics
3. Kahu
4. Kelvin Quantum
5. Unnamed from the University of Glasgow
6. Prospectral 
7. Quantopticon
8. RxWatt
9. SiDesign
10. Smith Optical