The UK’s Compound Semiconductor Applications Catapult has relaunched as the Semiconductor Catapult, expanding its remit to support technologies for AI hardware, defence and other strategically important sectors. The government-backed technology centre will work with startups, small and medium-sized enterprises and larger companies to develop, integrate, test and validate semiconductor technologies. Its facilities are in Newport, Bristol and Glasgow.

The relaunch follows plans announced by the government in June to refocus the existing Compound Semiconductor Applications Catapult around AI hardware as part of its £1.1bn AI Hardware Plan. The expanded Catapult is designed to help semiconductor companies bridge the gap between research and commercial deployment by giving them access to engineering expertise, laboratories and specialist equipment.

Key facts at a glance

• The Compound Semiconductor Applications Catapult has relaunched as the Semiconductor Catapult.
• The organisation’s remit now covers AI hardware, defence and other strategically important sectors.
• It will work with startups, SMEs and larger companies.
• Its facilities are located in Newport, Bristol and Glasgow.
• The relaunch follows June plans to refocus the Catapult as part of a £1.1bn AI Hardware Plan.
• Four priority areas are advanced packaging and heterogeneous integration; power electronics and thermal management; photonics and optical interconnects; and RF and mixed-signal integration.
• The first phase will focus on integration and core silicon capabilities that allow companies to validate semiconductor architectures and reduce technical risk.
• A second phase will develop system-level integration capabilities and routes towards scale-up and small-volume production.
• The UK semiconductor industry generated an estimated £10.6bn in revenue in 2024/25, with 297 dedicated semiconductor companies employing around 16,350 people.
• The AI Hardware Plan includes £750m for a new national AI supercomputer and £400m to purchase next-generation AI chips, including £150m to buy novel chips from startups and UK companies.

From compound semiconductors to a broader national role

The change marks a significant shift for an organisation that was previously focused on compound semiconductor applications. By relaunching as the Semiconductor Catapult, the centre is taking on a broader role in the UK’s semiconductor ecosystem. That role extends beyond a single family of materials or a narrow set of device technologies. It now covers the integration, testing and validation work that companies need as they move from prototype designs towards products that can be manufactured and deployed at scale.

The government-backed model is intended to lower barriers for smaller companies that may not have their own cleanrooms, packaging lines or specialist test equipment. Access to shared facilities can be particularly important for startups and SMEs, which often need to prove that a chip or module works reliably before they can attract customers or investment. Larger companies can also use the facilities to test new architectures, integration approaches or manufacturing routes without building every capability in-house.

Four technology priorities

The expanded Catapult will focus on four areas: advanced packaging and heterogeneous integration; power electronics and thermal management; photonics and optical interconnects; and RF and mixed-signal integration. These areas are closely connected to the performance, energy efficiency and manufacturability of modern AI systems.

Advanced packaging and heterogeneous integration

Advanced packaging has become a critical part of semiconductor development as gains from traditional transistor scaling become harder and more expensive to achieve. Heterogeneous integration allows different types of chips, materials and components to be combined in a single package or system. This approach can support higher bandwidth, lower latency and more efficient use of space in AI accelerators, data centre systems and edge devices. It also creates new challenges in thermal management, reliability and testing, which are precisely the kinds of engineering problems that a Catapult facility can help companies address.

Power electronics and thermal management

AI hardware places heavy demands on power delivery and cooling. Power electronics are needed to convert and manage electricity efficiently, while thermal management determines how much performance can be sustained without overheating. These issues matter from the chip level to the data centre level. They are also important in defence systems, electric transport, industrial equipment and clean energy infrastructure, where reliability and efficiency are essential.

Photonics and optical interconnects

Photonics and optical interconnects use light rather than electrical signals to move data. As AI models grow and data traffic increases, optical links can offer advantages in bandwidth and energy efficiency over longer distances. The technology is relevant to data centres, high-performance computing and communications networks. It also has potential in sensing and defence applications. The Catapult’s focus on photonics reflects a wider interest in using optical technologies to overcome some of the limits of electrical interconnects.

RF and mixed-signal integration

Radio frequency and mixed-signal integration combines analogue and digital functions in compact systems. These capabilities are important in communications, radar, sensing and electronic warfare, as well as in many consumer and industrial devices. Defence applications often require highly reliable RF components that can operate in demanding environments. By supporting RF and mixed-signal integration, the Catapult can help companies test and validate designs that combine multiple functions on a single platform.

A two-phase approach to commercial readiness

The Catapult said its initial phase will focus on establishing integration and core silicon capabilities that allow companies to validate semiconductor architectures and reduce technical risk. This phase is likely to involve engineering support, access to laboratories and specialist equipment, and work on the practical steps needed to turn a design into a testable prototype.

A second phase will develop system-level integration capabilities and routes towards scale-up and small-volume production. That step is important because many promising technologies fail not at the research stage but when they must be manufactured repeatably, packaged reliably and tested at volume. The Catapult’s role is to help companies understand and manage those transition risks before they commit to full-scale production.

Economic context and the UK semiconductor base

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

Those findings help explain why the government is expanding the Catapult’s remit. The UK has strengths in chip design, compound semiconductors, photonics and research, but it has less capacity in some areas of advanced manufacturing and packaging. The Catapult is intended to connect research expertise with the practical engineering and facilities needed to move technologies closer to commercial deployment.

The AI Hardware Plan

The AI Hardware Plan, published in June, included £750m for a new national AI supercomputer and £400m to purchase next-generation AI chips. Within that £400m, there is a £150m commitment to buy novel chips from startups and UK companies. The plan also included an £18m hardware security research and development programme and plans for a new investment fund backed by up to £150m from the British Business Bank to support UK hardware companies.

The government said at the time that refocusing the Catapult would help UK semiconductor companies integrate and validate their technologies as they move towards deployment. The combination of public research funding, procurement commitments and shared facilities is intended to create a more connected domestic hardware ecosystem.

Retaining economic value in the UK

Caroline O’Brien, chief executive of the Semiconductor Catapult, said the organisation would seek to ensure more of the economic value generated by emerging semiconductor technologies remains in the UK. She said the market opportunity for the UK in AI hardware and defence is moving quickly. She added that the Semiconductor Catapult ensures more of the technologies, supply chains and economic benefits created by semiconductor innovation are developed and retained in the UK.

O’Brien also said that bringing together engineering expertise and specialist facilities would help companies reduce technical risks and accelerate products towards market. That emphasis on risk reduction is important in hardware, where development cycles can be long and expensive. Companies often need to demonstrate that a technology works outside the laboratory before they can win customers, secure investment or enter supply chains.

Why AI hardware and defence matter

AI hardware and defence are both areas where semiconductor capability has strategic importance. AI systems depend on specialised chips, high-bandwidth memory, advanced packaging, power delivery and cooling. Defence systems depend on reliable electronics, secure supply chains and components that can perform in challenging conditions. Both areas are also shaped by national security considerations, export controls and the desire for resilient domestic capabilities.

The expanded Catapult’s work is therefore not only about commercial growth. It is also about building practical capabilities that can support supply chain resilience and reduce dependence on a small number of overseas suppliers. For startups and smaller companies, access to shared facilities can make it possible to compete in markets that would otherwise require very large capital investment.

The Catapult said its facilities will also be used to support applications spanning data centres, communications, clean energy and transport, alongside AI and defence. That breadth reflects the fact that semiconductor technologies developed for one sector often have applications in others. Power electronics, photonics, RF systems and advanced packaging all have roles across multiple industries, from communications networks to electric vehicles and renewable energy systems.

Source:UKTN News