London, UK – August 19, 2025 – 

The UK’s Council for Science and Technology (CST) has issued a new report urging the government to prioritize the creation of a sovereign AI chip design industry. The landmark document, titled “Building a Sovereign AI Chip Design Industry in the UK,” highlights the critical role semiconductors play in the nation’s economic resilience and national security. The CST argues that the UK is uniquely positioned to become a global leader in AI chip design, but only if it acts decisively to address key challenges in skills, investment, and infrastructure.

The Call for Action and Key Recommendations

The CST’s advice, provided to the Prime Minister and Cabinet, outlines a strategic vision to secure the UK’s place at the forefront of the rapidly expanding AI chip market. The report notes that AI chips are forecast to grow at approximately 30% per year, becoming over 50% of global semiconductor revenue by 2030. To capitalize on this opportunity, the CST made six key recommendations:

 * Increase the Workforce: The report calls on the Department for Science, Innovation and Technology (DSIT) and the Department for Education (DfE) to dramatically increase the number of new chip designers in the UK workforce by 2030. This can be achieved through more bursaries, fellowships, and a nationally curated chip design course to be replicated across UK universities. The report estimates that the UK will need an additional 5,000 chip designers in the next five years to launch 50 new AI chip products.

 * Expand Optoelectronics Training: The CST emphasizes the need for increased investment in training and skills for optoelectronics, as future AI chips are expected to rely heavily on optical communications. The Optoelectronics Research Centre (ORC) is identified as a key institution for this expansion.

 * Set Clear Strategic Objectives: The report urges the DSIT and the Ministry of Defence (MOD) to collaborate on a clear semiconductor strategy. This collaboration would provide a strong, coordinated signal to the UK’s semiconductor sector regarding where strategic activity is most needed.

 * Coordinate Investment: The CST recommends that the government better coordinate investment across the entire innovation pipeline, from early-stage R&D to commercialization, to support the growth of the AI chip industry.

 * Improve Infrastructure Access: The report highlights a need for greater and more affordable access to semiconductor infrastructure for small and medium-sized enterprises (SMEs) and academics. This can be facilitated through a “UK Semiconductor Centre” to coordinate facilities and measure success.

 * Support Startups: Finally, the CST advises that the DSIT and the Department for Business and Trade (DBT) explore how UK startups can access the leading-edge technology required to compete on a global scale.

Why a Sovereign AI Chip Industry is Critical

Developing a domestic AI chip design industry is not just about economic growth; it’s a matter of national security and technological sovereignty. By designing its own AI chips, the UK can reduce its reliance on volatile overseas supply chains and ensure that it has the foundational technology necessary for its own economic and defense needs. The report highlights that a domestic industry would foster innovation, create high-value jobs, and enhance the country’s overall technological competitiveness.

While the UK has a strong history in research and design, the CST’s report serves as a wake-up call, emphasizing that without a clear, concerted strategy and significant investment in a skilled workforce and infrastructure, the nation risks falling behind in one of the fastest-growing and most strategically important sectors of the global economy.