Industry Briefing · UK Semiconductors & Chips
The UK semiconductor sector spans chip design, photonics, and advanced computing hardware, with key clusters in Bristol, Cambridge, London, and Southampton. Companies are building AI accelerators, GaN power devices, photonic processors, and next-generation silicon, backed by growing government investment and a deep pool of specialist venture capital.
UK Semiconductors & Chips · 9 companies
Featured
AccelerComm is a Southampton-based semiconductor IP company spun out of the University of Southampton's Electronics and Computer Science department in 2016 by Professor Rob Maunder and Dr Taihai Chen. The company commercialises forward error correction and channel coding algorithms for 5G, 6G, and satellite non-terrestrial networks, with products including high-performance LDPC and POLAR error correction IP. AccelerComm's technology powers over 200 production satellites currently in orbit, with customers including Vodafone, Intel, AMD, and National Instruments. The company raised a total of $52.8M, including a £21.5M Series B in 2023 led by ParkWalk, SwisscomVentures, and Hostplus, and a subsequent $15M round in 2025.
Cambridge
Porotech is a University of Cambridge spinout founded in 2018 following over a decade of research in gallium nitride materials, formally spun out in January 2020. Led by CEO Dr Tongtong Zhu with 15+ years of III-nitride semiconductor expertise, CSO Professor Rachel Oliver (Director of the Cambridge Centre for Gallium Nitride), and CTO Dr Yingjun Liu, the company created a novel porous GaN semiconductor material enabling next-generation micro-LED displays. The technology offers brighter, sharper displays for smartphones, smartwatches, AR/VR headsets, and outdoor environments. Porotech has raised $25.4M to date, including a £3M seed extension led by Speedinvest and a $20M Series A in 2022 led by Ameba Capital.
Cambridge
FocalPoint was founded in 2015 by Dr Ramsey Faragher as a University of Cambridge spinout. Faragher holds a PhD in the effects of multipath interference on radio positioning systems and previously served as Principal Scientist at BAE Systems, where he developed the award-winning NAVSOP opportunistic positioning suite. He is a Fellow of the Royal Institute of Navigation and Bye Fellow of Queens' College, Cambridge. The company's core innovation is Supercorrelation, a patented chipset-level software that improves the sensitivity, accuracy, and reliability of GNSS receivers without additional hardware. FocalPoint offers S-GNSS Auto for automotive, S-GNSS Cell for smartphones, and S-GNSS Wear for fitness tracking. The company has a strategic partnership with STMicroelectronics and received investment from GM Ventures. FocalPoint has raised $69.2M across multiple rounds, including a Series C co-led by Molten Ventures and Gresham House.
Cambridge
Cambridge GaN Devices was spun out from Cambridge University's Department of Engineering in 2016 by Dr Giorgia Longobardi (CEO) and Professor Florin Udrea (CTO). The fabless semiconductor company designs and commercialises gallium nitride power transistors and integrated circuits through its proprietary ICeGaN technology, enabling energy efficiency levels exceeding 99% and reducing energy consumption by up to 50% in applications including data centre power supplies and automotive electric vehicles. The technology builds on decades of GaN research at Cambridge, with Udrea's work recognised through induction into the ISPSD Hall of Fame. The company raised $32M in a Series C in February 2025, bringing total funding to over $60M from investors including IQ Capital, ParkWalk, BGF, Cambridge Innovation Capital, Foresight Group, and British Patient Capital.
Cambridge
PowerMatrix was founded in 2024 by Borong Hu, who brings over a decade of power electronics expertise including leading power converter development for GE's largest wind turbine and managing power supply innovation at Bitmain. Hu holds a PhD in power electronics from the University of Warwick and completed postdoctoral research at Cambridge, publishing 60 academic papers with 650 citations and winning the IEEE ECCE William Portnoy Award. The company develops advanced power conversion systems for AI and data centres, delivering 80% smaller form factors and 50% energy loss reduction compared to conventional systems. PowerMatrix's innovations span semiconductors, circuits, materials, and packaging to address multi-stage power conversion efficiency challenges.
Oxford
Salience Labs develops silicon photonics-based optical switches for AI data centres, enabling all-optical connectivity between compute nodes to overcome data-movement bottlenecks. Spun out from the University of Oxford and University of Munster in 2021, the company was co-founded by Vaysh Kewada, Johannes Feldmann, Harish Bhaskaran, and Wolfram Pernice. Its OC-32M all-optical switch delivers 10ns latency (20x lower than electronic alternatives) at under 1W per port, with 32-, 64-, and 128-port variants in development. Salience has raised $88M to date, including a $30M Series A led by Applied Ventures and ICM HPQC Fund. The company was ranked #28 in Sifted's AI 100 and #2 in Hardware. It is headquartered in Oxford with an office in San Jose.
London
Fractile is a London-based AI chip startup developing in-memory computing processors designed to run large language model inference up to 100x faster and 10x cheaper than current GPU systems. Founded by Oxford Robotics Institute PhD graduate Walter Goodwin, the company's novel chip architecture fuses computation with memory to eliminate the data-shuttling bottleneck that limits conventional hardware. Fractile emerged from stealth in July 2024 and has since announced a £100M commitment to expand UK operations, including a new hardware engineering facility in Bristol. The team includes senior hires from NVIDIA, ARM, and Imagination Technologies.
London
Olix Computing is a London-based startup developing the Optical Tensor Processing Unit (OTPU), a new type of AI accelerator that uses photonics rather than traditional GPU architecture for AI inference. The company integrates photonics with an SRAM-based memory architecture, which it claims can outperform high-bandwidth memory systems in efficiency, throughput per watt, and overall cost. Originally registered as Flux Corp Ltd in March 2024, the company rebranded to Olix Computing. Founded by 25-year-old serial entrepreneur James Dacombe, who also runs brain-monitoring company CoMind, Olix has grown to over 70 employees and plans to ship its first products by 2027. Valued at over $1B.
Bristol
Graphcore is a Bristol-based AI semiconductor company founded in 2016 by serial semiconductor entrepreneurs Nigel Toon and Simon Knowles. Toon previously led XMOS and Picochip, while Knowles co-founded Element14 (acquired by Broadcom) and Icera (acquired by NVIDIA for $435M). The company developed Intelligence Processing Units (IPUs), novel AI accelerators designed from the ground up for machine learning workloads, alongside the proprietary Poplar graph programming framework. Graphcore raised $767M in total funding, reaching a $2.77B valuation, with backing from Sequoia Capital, Atomico, Amadeus, Microsoft, and others. In July 2024, SoftBank Group acquired Graphcore for approximately $500M to $600M. The company continues to operate from Bristol with plans to expand its UK headcount to 750.
Backing Semiconductors & Chips · 30 investors
Founded in 2005, IQ Capital is a leading European deep tech venture capital firm based in Cambridge and London. Its general partners, Kerry Baldwin, Max Bautin, Simon Hirtzel, and Ed Stacey, have worked together for over 20 years. The firm leads rounds from pre-Seed to Series A and follows on via dedicated growth funds with up to £30m per company. Since inception it has partnered with over 200 deep tech founders, attracting $1.4 billion in follow-on capital to its portfolio. Notable investments include Thought Machine (core banking unicorn backed from Seed), Speechmatics, and Nyobolt, with exits to Apple, Meta, Google, Siemens, Qualcomm, and Oracle.
Founded in 2009 and now part of IP Group plc (FTSE 250), Parkwalk is the UK's most active investor in university spinout companies. The firm connects investors with high growth, IP rich startups through EIS and VCT fund structures, partnering closely with the tech transfer offices of Cambridge, Oxford, Imperial College, and Bristol. To date it has invested £483m across 200+ companies, achieving 39 exits (up to 16x) and returning £166m to investors. Notable co-investors include Amadeus Capital, Cambridge Innovation Capital, and Schroders. The team won Growth Investor of the Year 2024 and Best EIS Investment Manager in 2022 and 2023.
Founded in Cambridge and backed by Arm, Cambridge Innovation Capital, Ewan Kirk, Martlet Capital, and the University of Cambridge, Deeptech Labs is a post seed accelerator and VC fund for deep tech startups. It runs a twice yearly 10 week programme, investing £350,000 per selected company and connecting founders with a network of over 500 deep tech leaders. To date it has brought 48+ companies through eight accelerator cohorts. Notable alumni include Nu Quantum, Salience Labs, Xapien, and Circuit Mind. In partnership with British Business Investments, DTL deployed an additional £10m to fuel the UK early stage deep tech ecosystem.
Founded in 2015 by Harry Destecroix MBE following his $800m exit of University of Bristol spinout Ziylo, Science Creates is a deep tech ecosystem comprising incubators and a VC fund. Its three Bristol incubators (Unit DX, Unit DY, and OMX opening 2026) span 75,000 sq ft supporting over 125 startups and 370 jobs. The VC arm SCVC invests at pre-seed and seed ($500K to $3m) with Series A follow on up to $7m. Fund 1 ($17m) backed 12 companies; Fund 2 targets $100m. Portfolio companies include Delta g (quantum sensors), VyperCore (RISC-V), Scarlet Therapeutics, and Isomab. The network has contributed £125m GVA annually to the UK economy.
Founded in 1981 by Masayoshi Son, SoftBank Group is a Japanese multinational conglomerate and one of the world's largest technology investors. Its Vision Fund 1 ($98.6B, launched 2017) was the largest tech focused venture fund in history, backed by Saudi Arabia's PIF and Abu Dhabi's Mubadala. Vision Fund 2 ($56B) followed in 2019. Across both funds the portfolio spans 343 companies, producing 129 unicorns, 45 IPOs, and 35 acquisitions, including DoorDash, Flipkart, and Swiggy. In 2025, SoftBank committed $30B to OpenAI and co-founded the $500B Stargate AI infrastructure project alongside Oracle and MGX.
Founded in 2015 by Lior Susan, Eclipse is a venture capital firm focused on transforming essential physical industries through technology. The firm operates a distinctive 'Venture Equity' model, co-founding new companies with senior operators from organisations like Tesla, Amazon Robotics, and Northvolt. Eclipse invests from pre-seed to Series D and backs companies integrating hardware, software, and data across industries representing 75% of global GDP. Notable portfolio companies include VulcanForms, Bright Machines, Augury, Enovix, and Cellares. The firm also partnered with Mayo Clinic to create Nucleus RadioPharma.
Founded in 2018 by Alexis Houssou, Jerry Yang, and Aymerik Renard, HCVC (formerly Hardware Club) is an early stage venture capital firm investing in companies automating and digitising the physical world. The firm operates a dual model: a VC fund alongside a selective global community of 600+ hardtech startups (sub-7% acceptance rate) offering shared manufacturing, distribution, and supply chain resources through 200 partners including Foxconn and Amazon Launchpad. Fund I ($50M) backed 50 companies; Fund II ($75M, 2023) targets 40 investments. Notable LPs include John Elkann (Stellantis/Ferrari), Toto Wolff (Mercedes F1), and Albert Wenger (USV). Portfolio companies include Cowboy, Renaissance Fusion, Automata, and Span.
Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, NVIDIA is the world's most valuable company ($4.4T market cap) and dominant force in AI computing hardware with 92% discrete GPU market share. Through NVentures (est. 2021), its corporate venture arm, NVIDIA has invested in over 100 AI startups across 2024–2025 alone, participating in nearly 67 deals in 2025. Notable investments include Poolside ($500M round), Lambda ($480M), Black Forest Labs ($300M), AI21 Labs ($300M), and Skild AI ($135M). NVentures also made strategic quantum computing bets in QuEra, Quantinuum, and PsiQuantum. Beyond capital, NVIDIA offers portfolio companies technical collaboration, go-to-market support, and access to its global developer ecosystem.
The NATO Innovation Fund (NIF) is a EUR 1 billion venture capital fund backed by 24 NATO allied nations, established to invest in deep tech startups that strengthen defence, security, and resilience across the alliance. It targets early-stage companies working on breakthrough science and engineering, leading rounds of up to EUR 15 million with significant follow-on reserves. Notable portfolio companies include ARX Robotics (autonomous defence robotics), Fractile (AI computing hardware), and Space Forge (in-space semiconductor manufacturing).
Founded in 2015, Oxford Science Enterprises (OSE) is an independent investment company created to found, fund, and build transformational businesses through its unique partnership with the University of Oxford. The firm invests across life sciences, health tech, and deep tech, writing cheques from £50,000 to £25m and following on to exit. OSE holds a portfolio of around 40 companies and has backed notable spinouts including Vaccitech, OMass, and Caristo Diagnostics, with exits to Waymo and AbbVie.
Pat Gelsinger is the former CEO of Intel and VMware, now active as an angel investor and General Partner at Playground Global, a deep tech venture firm managing $1.2 billion in assets. His personal angel investments include UK-based AI chip startup Fractile, which raised $15 million in seed funding. Through Playground, he backs companies such as PowerLattice (power-efficient chiplets), xLight (EUV laser technology for semiconductor manufacturing), and PsiQuantum (quantum computing). He focuses on foundational hardware and silicon innovations that push the boundaries of Moore's Law.
Cambridge Innovation Capital is a venture capital firm investing in deep tech and life sciences companies emerging from the University of Cambridge ecosystem. The firm manages over £600 million across multiple funds and has backed more than 40 businesses, supporting over 115 founders. Its portfolio spans AI, quantum computing, semiconductors, genomics, MedTech, and therapeutics. Notable exits include the $1.5 billion acquisition of Gyroscope Therapeutics by Novartis. CIC invests from seed through to later stages via its dedicated Opportunity Fund.
Applied Ventures is the corporate venture capital arm of Applied Materials, the world's largest supplier of semiconductor manufacturing equipment. Founded in 2006 and headquartered in Santa Clara, California, the firm invests globally across the "Materials to Systems" technology stack, targeting startups in advanced materials, semiconductors, energy storage, AI and quantum computing. With a portfolio spanning over 90 companies in 18 countries, notable investments include Qolab (quantum computing) and Transphorm (GaN power semiconductors). Applied Ventures connects portfolio companies with Applied Materials' global customer and supply chain network.
ICM HPQC Fund is a venture capital sub-fund of ICMGF VCC, managed by ICM Global Funds Pte Ltd. It invests in next-generation computing technologies, including high-performance computing, quantum technology, and advanced data centre innovations. The fund targets early-stage companies in semiconductors, photonics, AI infrastructure, and quantum computing that bridge the gap between demand for more powerful, energy-efficient, and secure computing and the ability of existing systems to deliver it. Notable investments include Salience Labs, Mixx Technologies, and Diraq.
Material Ventures is a London-based venture capital firm founded in 2022 by Leon Kirchhoff and Piotr Brzezinski. Backed by US-based tech founders and GPs, the firm invests at pre-seed to Series A in European companies building at the intersection of software and the physical world. Its portfolio includes Isembard, an advanced manufacturing platform for aerospace and defence; Sky Spy, a dual-use defence technology startup; and folk, a CRM platform. The fund has invested in 12 companies to date.
Jaan Tallinn is an Estonian programmer, co-founding engineer of Skype and Kazaa, and one of Europe's most prolific deep tech angel investors. He invests primarily through Metaplanet Holdings, which he founded in 2011 to back mission-driven founders working on transformative technologies. He is a former investor director at DeepMind and led Anthropic's $124M Series A round. His portfolio spans over 200 companies, including unicorns Anthropic and Astranis. He co-founded the Centre for the Study of Existential Risk and the Future of Life Institute.
Robert Bosch Venture Capital (RBVC), founded in 2007, is the corporate venture capital arm of the Bosch Group, one of the world's largest private companies with over EUR 70 billion in annual sales. RBVC invests globally in seed through growth-stage startups developing technologies aligned with Bosch's strategic interests, including AI, autonomous systems, energy efficiency, and quantum computing. With over 60 active portfolio companies, notable investments include quantum computing leader IonQ, AI cooling specialist JETCOOL Technologies, and battery recycler Cylib.
Hostplus is one of Australia's largest industry superannuation funds, managing over $115 billion in assets for more than two million members. Originally established for the hospitality, tourism and recreation sectors, it has become a significant investor in venture capital and deep tech. Through its partnership with IP Group Australia, Hostplus backs early-stage companies in clean energy, decarbonisation, healthcare and quantum computing. Its notable portfolio includes investments in Canva, Hysata and Oxford Nanopore Technologies.
Innovate UK is the United Kingdom's national innovation agency, operating as part of UK Research and Innovation (UKRI). Established originally as the Technology Strategy Board, it provides grants, loans, expert support and industry connections to help businesses develop and commercialise new technologies. Its flagship programmes include the Biomedical Catalyst, the Growth Catalyst scheme and Bridge AI. Innovate UK has backed companies across quantum computing, clean energy and advanced manufacturing, and is recognised as a key funder behind the UK's position as Europe's leading deep tech hub.
The National Security Strategic Investment Fund (NSSIF) is the UK Government's deep tech venture capital fund for national security and defence, operated in partnership with the British Business Bank. Founded in 2018, it invests commercially in early-stage startups developing dual-use technologies with applications across both the private sector and the national security community. Its portfolio includes companies in quantum computing, photonics, AI, autonomous systems, and semiconductors, with notable investments in Orca Computing, Riverlane, Quantum Motion, and Nu Quantum.
British Patient Capital is a subsidiary of the British Business Bank, established in 2018 to support UK companies requiring long-term, patient investment. It commits capital to venture and venture growth funds that back innovative businesses across the country, with a particular emphasis on scaling high-potential companies. Operating primarily as a fund-of-funds and co-investor, it has made commitments to funds managed by firms including Balderton Capital, Amadeus Capital Partners, and IQ Capital, helping bridge the funding gap for UK technology and life sciences companies.
Cambridge Enterprise is the University of Cambridge's commercialisation arm, helping researchers and academics turn their work into real-world impact. It supports spinouts and startups through technology transfer, intellectual property licensing, academic consultancy and direct venture investment. Its Seed Funds provide pre-seed and seed capital of up to £500k, while Cambridge Enterprise Ventures invests in high-growth Cambridge-linked companies. With over 50 years of experience, its portfolio spans life sciences, AI, quantum computing and advanced materials, having catalysed over £3.5bn in follow-on funding.
Founded in 2021 by Loris Lanzellotti and Alberto Emprin, Excellis is a Turin-based private holding company that invests in deep tech startups founded or co-founded by Italian researchers working at leading European and American universities. The firm co-invests alongside established international venture capital funds at the pre-seed, seed, and Series A stages. Its focus spans embedded technologies, robotics and automation, cleantech, and medtech, with portfolio companies including Annaida Technologies, Mintneuro, Fluorok, and Nagi Bioscience.
In-Q-Tel (IQT) is an independent, not-for-profit strategic investment firm established in 1999 to deliver cutting-edge technology to the CIA and the broader US intelligence community. Backed by government funding, it identifies and invests in early-stage startups whose technologies can address national security challenges. IQT has backed over 800 companies across frontier domains and helped launch firms including Palantir Technologies, Keyhole (later Google Earth), and MongoDB. It operates globally from offices in Arlington, London, Sydney, Munich, and Singapore.
In-Q-Tel (IQT) is an independent, not-for-profit strategic investment firm established in 1999 to deliver cutting-edge technology to the CIA and the broader US intelligence community. Backed by government funding, it identifies and invests in early-stage startups whose technologies can address national security challenges. IQT has backed over 800 companies across frontier domains and helped launch firms including Palantir Technologies, Keyhole (later Google Earth), and MongoDB. It operates globally from offices in Arlington, London, Sydney, Munich, and Singapore.
Mubadala Investment Company is a sovereign wealth fund owned by the Government of Abu Dhabi, managing over $300 billion in assets across more than 50 countries. The fund invests globally across technology, energy, healthcare, and infrastructure, with a focus on long-term value creation and economic diversification. Notable investments include a major stake in GlobalFoundries, one of the world's largest semiconductor manufacturers, significant backing of clean energy through Masdar, and substantial commitments to venture capital via partnerships with funds such as Silver Lake and SoftBank Vision Fund.
New Science Ventures (NSV) is a venture capital firm founded in 2004 by Somu Subramaniam and Tom Lavin, with offices in Greenwich, Connecticut, and London. The firm invests in early and late stage companies that leverage breakthrough science to address significant unmet needs in life sciences and information technology. Its life sciences focus covers pharmaceuticals, biologics, medical devices, and diagnostics, while its IT focus spans high-performance semiconductors, cellular infrastructure, sensor networks, and enterprise software. NSV has made 154 investments and achieved 23 portfolio exits.
Scania Invest is the in-house corporate venture capital arm of Scania, the Swedish heavy vehicle manufacturer owned by the TRATON Group. Founded in 2024, it invests across all stages in four strategic verticals: Energy and Infrastructure, Autonomous and Supply Chain, Asset Management and Circularity, and Deep Tech. Notable portfolio companies include Nyobolt (ultrafast-charging batteries), Neutreeno (supply chain decarbonisation), and Cosmos Innovation. The fund leverages Scania's industrial capabilities to support portfolio companies as a long-term strategic partner.
Founded in 2019, Type One Ventures is a Malibu-based venture capital firm that invests in Seed and Series A startups building technology to advance humanity toward a "Type One Civilization," a concept drawn from the Kardashev scale of technological progress. The firm's thesis integrates space technology, biotech, and human performance, viewing longevity and augmented capability as prerequisites for interplanetary life. Notable portfolio companies include Axiom Space, PsiQuantum, and Gravitics.
Wren Capital is a London-based angel investment group founded in 2011 by Rajat Malhotra and Richard Cameron. The firm provides seed funding to early-stage companies in science, engineering and software, typically investing £50,000 to £200,000 per round in exchange for equity. Its portfolio spans sectors from genome editing to satellites, with notable investments including Oxford Space Systems, Spectral Edge (acquired by Apple) and Horizon Discovery (acquired by Revvity). Co-founder Malhotra was named UK Angel Investor of the Year in 2013.
Semiconductors & Chips · 129 roles
Common Questions
The UK semiconductor industry focuses on chip design, compound semiconductors, photonics, and advanced computing hardware. While the UK does not have large-scale chip fabrication, it has world-class design expertise, particularly in Cambridge and Bristol. Companies range from early-stage startups designing AI accelerators and photonic processors to established firms like Graphcore working on large-scale AI compute.
UK semiconductor companies are among the largest hirers in the hard tech ecosystem, with over 100 open roles across the sector. Graphcore (Bristol), Fractile (London), Cambridge GaN Devices (Cambridge), and AccelerComm (Southampton) are all actively recruiting across ASIC design, hardware engineering, software engineering, and silicon verification roles.
UK semiconductor investors include deep tech venture capital firms like IQ Capital, ParkWalk, and Cambridge Innovation Capital, alongside corporate venture arms from companies like NVIDIA, Applied Ventures, and Bosch. Government-backed programmes including Innovate UK and the National Security Strategic Investment Fund (NSSIF) also invest in the sector.
UK semiconductor companies are concentrated in four main clusters. Bristol is home to Graphcore and a wider silicon design community. Cambridge has strong ties to the university's engineering department, with Cambridge GaN Devices and DeepTech Labs nearby. London hosts Fractile, Olix, and Salience Labs. Southampton is a hub for wireless and communications chip design, home to AccelerComm.
Weekly Hard Tech Job Digest
New UK hard tech roles delivered every Tuesday.