Innovate UK has launched the “Developing Semiconductor Hardware for Critical Technologies” competition, offering up to £5 million to support feasibility studies that explore innovative advancements in semiconductor hardware design and manufacturing. This initiative is a strategic move to enhance the UK’s position in critical technology areas by fostering domestic capabilities in semiconductor development.
Strategic Importance
This funding opportunity aligns with the UK’s broader strategy to enhance its capabilities in critical technologies, including semiconductors. By investing in feasibility studies that explore innovative hardware design and manufacturing processes, the UK aims to strengthen its position in the global semiconductor market, foster economic growth, and ensure technological sovereignty.
A recent report by Perspective Economics highlights the UK’s semiconductor sector, which includes over 200 companies in research, design, and manufacturing that generated £9.6 billion in revenues in 2022. This represents approximately 2% of global semiconductor revenues.
Competition Overview
The primary objective of this competition is to encourage UK-based businesses to investigate the feasibility of novel ideas that could lead to significant advancements in semiconductor hardware. These studies should focus on innovations that have the potential to improve the design and fabrication processes within the UK, thereby contributing to the nation’s competitiveness in critical technologies.
Scope and Focus Areas
The competition seeks projects that explore the feasibility of advancements in semiconductor hardware design or fabrication with the potential to impact UK businesses operating in critical technology areas. Specific themes of interest include:
- Novel semiconductor materials or designs
- Semiconductor fabrication techniques
- Manufacturing equipment innovation
- Multi-technology integration or interfacing
- Novel packaging materials and techniques
- Advanced packaging
- Thermal management
- Front-end of line processes
- Back-end of line processes
- In-line and end-of-line testing
- Development of Process Design Kits (PDKs)
Projects focusing on the design or fabrication of printed circuit boards (PCBs) or the assembly of end-use systems are not eligible for funding under this competition.
Key Details
Key details of the competition include:
- Funding Allocation: Up to £5 million in total funding is available.
- Project Duration: Projects must last up to six months.
- Project Start and End Dates: Projects should start by 1st September 2025 and end by 28th February 2026.
- Funding Range per Project: Eligible grant funding requests must be between £75,000 and £300,000.
The competition is designed to support feasibility studies that assess both the technical and commercial viability of proposed innovations. Applicants are expected to identify potential barriers to market adoption and explore opportunities for their technologies within the UK’s semiconductor landscape.
Eligibility Criteria
To participate in the competition, applicants must meet specific eligibility requirements:
- Lead Organisation: Must be a UK-registered business of any size.
- SME Involvement: The project must involve at least one grant-claiming micro, small, or medium-sized enterprise (SME).
- Project Work: All funded project work must be carried out in the UK.
- Exploitation of Results: The results of the project should be intended for exploitation within the UK.
Collaborative projects are encouraged and can include UK-registered businesses, academic institutions, charities, not-for-profit organisations, public sector organisations, and research and technology organisations (RTOs). Each partner organisation must be invited into the Innovation Funding Service (IFS) by the lead to collaborate on a project. Once partners have accepted the invitation, they will be asked to log in or create an account in IFS. They are responsible for entering their own project costs and completing their Project Impact questions in the application.
Funding Details
The competition offers grant funding to cover a portion of eligible project costs, with the percentage varying based on the size of the organisation:
- Micro or Small Organisations: Up to 70% of eligible project costs.
- Medium-sized Organisations: Up to 60% of eligible project costs.
- Large Organisations: Up to 50% of eligible project costs.
Research organisations undertaking non-economic activity as part of the project can share up to 30% of the total eligible project costs. Funding for these organisations is available at 100% of eligible costs for RTOs, charities, not-for-profit organisations, public sector organisations, or research organisations, and at 80% of full economic costs (FEC) for Je-S registered institutions such as academic institutions.
Application Process and Key Dates
Applicants must submit their proposals through the Innovation Funding Service portal. The application process involves providing detailed information about the project, including objectives, methodology, expected outcomes, and budget. Key dates for the competition are:
- Competition Opens: Monday, 14th April 2025
- Online Briefing Event: Wednesday, 16th April 2025 at 2:00pm
- Competition Closes: Thursday, 29th May 2025 at 11:00am
- Applicants Notified: Monday, 30th June 2025
- Project Start Date: Monday, 1st September 2025
Applicants are encouraged to attend the online briefing event to gain insights into the competition’s objectives and application process. Briefing slides will be available for download from the Supporting Information section after the event.
For a free consultation to discuss your project idea, contact RedKnight today.
