UK chip strategy receives £1.2bn in fresh capital allocations

The government has allocated a further £1.2bn to the UK's semiconductor strategy, with the bulk of the new funding directed at compound semiconductors and advanced packaging rather than leading-edge fabrication.

The choice reflects a sober reading of where the UK can actually compete. Building a state-of-the-art logic fab would cost more than the entire strategy budget several times over; specialising in the niches where British research already leads is, officials argue, the only realistic path.