United Kingdom Semiconductor Market Report and Forecast 2024-2032

United Kingdom Semiconductor Market Outlook

The United Kingdom semiconductor market size reached around USD 13.116 billion in 2023. The market is estimated to grow at a CAGR of 6.7% in the forecast period of 2024-2032, reaching a value of USD 18.188 billion by 2032.

Key Takeaways

• The UK has well-established material science R&D, design and manufacturing base with several applications in areas including 5G and electric vehicles, clean energy, and defence.

• There are 23 semiconductor fabrication plants spread across the country, with some of the leading providers of semiconductor design and IP solutions.

• The design and IP developed by UK manufacturers are leading to improvements in computing power and power management, enabling consumers to get access to powerful and energy-efficient technology.

Semiconductors are crucial components of modern electronic systems and are widely utilised in power electronic components such as switches and transistors and are the primary components of computer chips.

The rising adoption of electric vehicles (EVs) in the UK, driven by the need for sustainability, is surging the demand for semiconductors. Semiconductors are used in the automotive market as airbag sensors, in ABS break, automatic cars, and navigation work. The demand and popularity of automatic cars is expected to drive the semiconductor market. A large number of chips are available and used in these vehicles.

Figure: Cumulative number of battery-electric cars in the UK (2019 to date)

Key Trends and Developments

Rising research and development activities; rollout of 5G technology; expansion of the automotive sector; and rising number of data centres are the key trends impacting the United Kingdom semiconductor market growth

Dec 6, 2023

Pragmatic raised GBP 182 million for the expansion of its manufacturing facilities for boosting its UK semiconductor production.

May 18, 2023

The government of UK announced an investment of GBP 1 billion (USD 1.24 billion) for its semiconductor sector, aimed to improve its domestic chipmaking capabilities and prevent disruptions to supply.

Nov 10, 2022

Micron Technology, Inc. announced the availability of DDR5 memory for the data centre for 4th generation AMD EPYC™ 9004 Series processors.

Increasing deployment of 5G networks and smartphones

Several UK communities are gaining access to 5G networks, as operators across the country accelerate 5G deployments, which will increase the adoption of semiconductors by base stations and wireless network equipment.

Increasing research and development

The rising focus on research and development is supporting the development of new semiconductor solutions to cater to the rising demand from diverse industries. Highly qualified semiconductor and embedded software design engineers are continuously working in the fields of radio frequency (RF), analogue, interface, power management, security, and digital processing.

Rising demand from the automotive sector

Semiconductors are critical for batteries and power trains and crucial components in the firmware found in a majority of modern vehicles. Additionally, as the number of EV orders keeps increasing with the incorporation of semi-autonomous features, the need for semiconductors is expected to rise.

A growing number of data centres

The UK is an important market for data centres and is made up of commercial data centre operators that provide data centre services to third parties (data centre colocation), and in-house data centres that support corporate IT functions and customer services for banks, retailers and universities. The country has over 250 operational colocation data centres in places such as London, Manchester, Slough, Birmingham and Wales.

United Kingdom Semiconductor Market Trends

Compound semiconductor technology is based on materials such as gallium nitride and outperforms silicon devices in terms of energy efficiency, size, and speed and is used to power transformational applications. According to the United Kingdom semiconductor market analysis, major autonomous and electric vehicle manufacturers, technology companies, and communication providers are adopting compound semiconductor technology to enhance the performance of their products and solutions.

Further, transition towards greener modes of transportation in the United Kingdom is boosting EV adoption in the country, which, in turn, is surging the usage of semiconductors. Investments to expand EV charging infrastructure in the country are expected to increase the ownership of electric vehicles. By 2030, the UK has planned on reaching 300,000 public electric vehicle charge points.

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Market Segmentation

“United Kingdom Semiconductor Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

• Silicon (Simple) – Larger Node Size Greater Than 180 NM

• Silicon (Complex) – Smaller Node Size Less Than 180 NM

• Compound Semiconductors– Made From Two or More Filaments

• Others

Market Breakup by Form

• ICs

• Optoelectronics

• Discrete Semiconductors 

• Sensors

Market Breakup by End Use

• Automotive

• Industrial

• Data Centre

• Telecommunication

• Consumer Electronics 

• Aerospace and Defence 

• Healthcare

• Others

Based on form, ICs account for a significant share of the United Kingdom semiconductor market

Integrated circuits (ICs) are a collection of electronic circuits designed in a single flat piece of semiconductor material, and compared to discrete circuits, are cost and performance effective.

The rising need for high power efficiency and power density in power applications, the requirements for greater functionality in small handheld devices, and faster data transmission rates in the communications segments are driving the need for a range of analogue, discrete, module and integrated semiconductor products to efficiently perform functions such as power switching, power conversion, circuit protection, signal conditioning, signal amplification, and voltage regulation.

Based on end use, the telecommunication sector accounts for the majority of the United Kingdom semiconductor market share

The UK government is increasingly building a resilient and secure communications infrastructure, which is expected to encourage semiconductor fabs to produce high-performance ultra-flat wafers to meet the needs of advanced semiconductors for telecom companies.

Meanwhile, in the consumer electronics sector, semiconductors are integrated within electronic components to perform functions such as processing data and storing information. Advancements in semiconductor technology is increasing its performance and functionality while reducing its size and cost.

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Competitive Landscape

The market players are developing new products and the underlying intellectual property to meet customer requirements in terms of product features, quality, performance, and cost

On Semiconductor Corporation

Onsemi is a leading semiconductor manufacturer headquartered in the US, with a strong global supply chain to serve domestic as well as international customers.

Horiba Ltd.

Founded in 1945, Horiba is engaged in the manufacture and supply of automotive emission measurement systems, environmental measuring instruments, scientific analyzers, medical diagnostic analyzers, and measuring equipment applied in the semiconductor industry.

Texas Instruments Incorporated

Headquartered in the United States, Texas Instruments is primarily engaged in the manufacture of semiconductors which are then sold to electronics designers and manufacturers around the world. The company is listed on the Nasdaq stock exchange under the symbol NASDAQ: TXN.

NXP Semiconductors N.V.

Founded in 2006, NXP Semiconductors is a leading semiconductor designer and manufacturer that provides mixed-signal and analogue products. The company deals in several sectors including automotive, communication infrastructure, industrial, mobile, computing, and IoT sectors.

Other notable players operating in the United Kingdom semiconductor market are Renesas Electronics Corporation, Intel Corporation, Samsung Electronics Co., Ltd, SK hynix Inc., Micron Technology, Inc., Qualcomm Incorporated, and Taiwan Semiconductor Manufacturing Company, Ltd., among others.

Key Highlights of the Report

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United Kingdom Semiconductor Market Report Snapshots

United Kingdom Semiconductor Market Size

United Kingdom Semiconductor Market Trends

United Kingdom Semiconductor Companies