£9 million funding boost to bring key semiconductor manufacturing capability to Scotland

New development could cut chip packaging process from months to just days for UK firms

A new R&D development designed to support the growth of semiconductor packaging has received a £9 million funding injection, helping to reshore a critical part of the UK’s £500 million electrification supply chain and create new opportunities for manufacturers to access new markets and cut costs.

Hosted by the National Manufacturing Institute Scotland (NMIS), the new development, which is funded by Innovate UK and set to open in 2025, will be located in Inchinnan, Renfrewshire, forming part of the University of Strathclyde’s Advanced Net Zero Innovation Centre (ANZIC).

Providing an advanced packaging scale-up line for power electronic semiconductors, this new capability – a first in Europe – will support the faster production of semiconductor chips, reducing packaging times for UK firms from months to just days.

Semiconductors play a crucial role in many aspects of modern life, powering essential technologies like renewable energy systems critical to achieving net zero goals. They are also vital for advanced computing, data storage, wireless communication, and the automotive sector. However, global materials shortages, limited manufacturing capacity, and a lack of facilities for innovation have left the UK supply chain reliant on international markets for key components, resulting in long delays.

Packaging, a key stage in semiconductor manufacturing, protects core components and readies them for use in a range of technologies. The process is evolving to accommodate more devices and functionalities within single packages and the UK’s semiconductor packaging market, valued at £500 million and employing 15,000 people, is projected to reach £750 million by 2030, with the NMIS facility set to further accelerate growth.

The NMIS scale-up packaging line will support UK companies with developing new solutions and expanding the use of UK-manufactured wafers – thin slices of semiconductor material used in electronic circuits – while addressing critical production gaps. By tapping into the expert support and state of the art equipment at the 600 m² development, manufacturing firms can potentially unlock access to the growing market for semiconductors, reinforcing Scotland’s position as a hub for advanced manufacturing and innovation.

Professor Matt Boyle, director of electrification at NMIS, said: “At the NMIS we work with manufacturers of all sizes to help them boost productivity and efficiency and we’re excited to help grow the semiconductors supply chain here in the UK and secure a lead in sector innovation.

“Working closely with the Compound Semiconductor Applications (CSA) Catapult, our focus is on highly specialised packaging, using our established engineering expertise to stay ahead of rising demand. Facilities and equipment for packaging have until now been the missing piece of the puzzle, and the new packaging line unlocks the potential to reshore manufacturing to the UK.

“This is just the beginning – our aim is to accelerate semiconductor manufacturing, allowing companies to explore new technologies and implement testing without disrupting day-to-day production. We look forward to collaborating with firms from across the supply chain and within our vast network, including the High Value Manufacturing (HVM) Catapult.”

Professor Sir Jim McDonald, Principal and Vice-Chancellor of the University of Strathclyde, said: “Strathclyde is delighted to be at the heart of this vital new investment and technology development initiative, which will strengthen the UK’s semiconductor supply chain and accelerate the journey towards net zero.

“As the operator of NMIS, we are committed to driving innovation and supporting industry in the transition to more sustainable and resilient manufacturing. By leveraging our world-class research, technical expertise and facilities, this initiative will enhance the UK’s technological capabilities, create high-value opportunities for businesses, and reinforce Scotland’s position as a global leader in advanced manufacturing.”

Martin McHugh, Chief Executive Officer at CSA Catapult said: “This new facility will allow semiconductor and packaging companies to try and test new ideas, helping to de-risk the commercialisation process and bring their products and solutions to market quicker.

“The facility will also allow us to expand the capabilities and relationships built under the Driving the Electric Revolution programme, working closely with colleagues from NMIS to take innovative packaging solutions developed at CSA Catapult into a state-of-the-art scale-up facility in Scotland.

“This transformation of ideas into products will be the key to unlocking the full growth potential of the UK’s semiconductor industry, helping to further develop our world-leading strengths in advanced packaging across a range of industries.”