Developing Semiconductor Hardware For Critical Technologies

Who can apply

Your project

Your project must:

• have a total grant funding request of between £75,000 and £300,000

• last up to six months

• carry out all its funded project work in the UK

• intend to exploit the results from or in the UK

• start by 1 September 2025

• end by 28 February 2026

Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date.

You must only include eligible project costs in your application. See our overview of eligible project costs. For specific guidance, see the eligibility section in this competition.

If your project’s total grant funding request or duration falls outside of our eligibility criteria, you must provide justification by email to support@iuk.ukri.org at least 10 working days before the competition closes. We will decide whether to approve your request.

If you have not requested approval or your application has not been approved by us, you will be made ineligible. Your application will then not be sent for assessment.

Lead organisation

To lead a project or work alone your organisation must:

• be a UK registered business of any size

• be or involve at least one grant claiming micro, small or medium sized enterprise (SME)

If collaborative you can work with other UK registered organisations.

More information on the different types of organisation can be found in our Funding rules.

Project team

To collaborate with the lead, your organisation must be one of the following UK registered:

• business of any size

• academic institution

• charity

• not for profit

• public sector organisation

• research and technology organisation (RTO)

Each partner organisation must be invited into the Innovation Funding Service (IFS) by the lead to collaborate on a project. Once partners have accepted the invitation, they will be asked to login or to create an account in IFS. They are responsible for entering their own project costs and completing their Project Impact questions in the application.

To be an eligible collaboration, the lead and at least one other organisation must:

• apply for funding when entering their costs into the application.

• include a rationale for the collaboration and describe the structure in the application

• ensure any one partner does not account for more than 70% of the total eligible costs

Non-funded partners

Your project can include non-UK partners, including partners based in the EU, who bring their own funding. Non-UK partners are permitted to carry out project work from within their home countries and exploit results overseas. Their costs will count towards the total eligible project costs.

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you cannot use subcontractors from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total eligible project costs.

Number of applications

A business can only lead on one application but can be included as a collaborator in two further applications.

If an organisation is not leading any application, it can collaborate in up to three applications.

Sanctions

This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Applicants must ensure that all the proposed work within projects, both that in the UK and internationally, will comply with the UKRI guidance on the use of animals in research and innovation.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Previous applications

You can use a previously submitted application to apply for this competition.

If you have previously submitted an application that reached our assessment stage, you can re-apply once more with the same proposal.

If there are minor differences to the proposal, but it is judged by us to be ‘not materially different’, the same rule applies.

We will not award you funding if you have:

• failed to exploit a previously funded project

• an overdue independent accountant’s report

• failed to comply with grant terms and conditions

Innovate UK may withhold a grant payment at any time if you have any outstanding sums due to us in relation to other projects.

Subsidy control (and State aid where applicable)

This competition provides funding to enterprises using the Research, Development and Innovation Streamlined Subsidy Scheme.

The Research, Development and Innovation Streamlined Scheme can be viewed on the subsidy database here: SC10780.

This is in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022 (legislation.gov.uk).

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. Please see the Windsor Framework to check if these rules apply to your organisation.

In the ‘Project details’ section of your application you will be asked questions to indicate if State Aid or Subsidy applies to your organisation.

Further Information

If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must always make sure that the funding awarded to you is compliant with all current Subsidy Control legislation applicable in the United Kingdom.

This aims to regulate any advantage granted by a public sector body which threatens to, or actually distorts competition in the United Kingdom or any other country or countries.

Funding

Up to £5 million has been allocated to fund innovation projects in this competition. Funding will be in the form of a grant.

If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.

Category 1 Feasibility studies

Funding available for your eligible project costs of:

• up to 70% if you are a micro or small organisation

• up to 60% if you are a medium sized organisation

• up to 50% if you are a large organisation

For more information on company sizes, please refer to the company accounts guidance.

If you are applying for an award funded under State aid Regulations, the definitions are set out in the European Commission Recommendation of 6 May 2003.

Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.

Research participation

The research organisations undertaking non-economic activity as part of the project can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them. Of that 30% you can get funding for your eligible project costs of up to:

• 100% of your eligible project costs if you are an RTO, charity, not for profit organisation, public sector organisation or research organisation

• 80% of full economic costs (FEC) if you are a Je-S registered institution such as an academic

Eligibility criteria for claiming 80% of FEC funding

1. Research organisations using the Je-S system must submit their costs through the Je-S system which calculates the 80% FEC figure.

2. On IFS, only the 80% FEC output should be entered at 100% funding.

3. Applicants do not need to show the remaining 20% on the finance table.

To find out more see our: Cost Guidance for Academics.

Your proposal

The aim of this competition is to encourage exploration of feasibility for innovative ideas with the potential to advance semiconductor hardware that can contribute to the global competitiveness of the UK in the critical technologies.

Your project must comprehensively address the feasibility of an advancement in hardware design or fabrication that has the potential to significantly impact the effectiveness of UK businesses operating in one or more of the critical technology areas. Output should include technical and commercial feasibility and identify potential barriers to achieving traction in the market as well as the opportunities.

Portfolio approach

We aim to fund a variety of projects across different technologies, markets and technological maturities. We call this a portfolio approach.

Specific themes

Your project can focus on one or more of the following:

• novel semiconductor materials or designs, or both

• semiconductor fabrication techniques

• manufacturing equipment innovation

• multi-technology integration or interfacing

• novel packaging materials and techniques

• advanced packaging

• thermal management

• front end of line processes

• back end of line processes

• in line and end of line test

• development of Process Design Kits (PDKs)

This list is not intended to be exhaustive.

Research categories

We will fund feasibility projects as defined in the guidance on categories of research.

Projects we will not fund

We are not funding projects that involve the:

• design or fabrication of printed circuit boards (PCBs)

• assembly of end use systems

We cannot fund projects that are:

• dependent on export performance, for example, giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country

• dependent on domestic inputs usage, for example, giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

16 April 2025

Online briefing: watch the recording.

Briefing slides are now available to download from Supporting Information.

30 June 2025

Applicants notified

1 September 2025

Project start by

Before you start

You must read the guidance on applying for a competition on the Innovation Funding Service before you start.

Before submitting, it is the lead applicant’s responsibility to make sure:

• that all the information provided in the application is correct

• your proposal meets the eligibility and scope criteria

• all sections of the application are marked as complete

• if collaborative, that all partners have completed all assigned sections and accepted the terms and conditions (T&Cs)

You can reopen your application once submitted, up until the competition deadline. You must resubmit the application before the competition deadline.

What we ask you

The application is split into four sections:

1. Project details.

2. Application questions.

3. Finances.

4. Project Impact.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments, for people who have a disability or a long-term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Note that the closing date for this competition is 29 May and our offices will be closed 26 and 27 May.

1. Project details

This section provides background for your application and is not scored.

Do not include any website addresses (URLs) in your answers.

Application team

Decide which organisations will work with you on your project and invite people from those organisations to help complete the application.

Application details

Give your project’s title, start date and duration.

Research category

Select the type of research you will undertake.

Project summary

Describe your project briefly and be clear about what makes it innovative. We use this section to assign the right experts to assess your application.

Your answer can be up to 400 words long.

Public description

Describe your project in detail and in a way that you are happy to see published. Do not include any commercially sensitive information. If we award your project funding, we will publish this description. This can happen before you start your project.

Your answer can be up to 400 words long.

Scope

Describe how your project fits the scope of the competition. If your project is not in scope, it will not be sent for assessment. We will tell you the reason why.

Your answer can be up to 400 words long.

2. Application questions

The assessors will score all your answers apart from questions 1, 2 and 3. You will receive feedback for each scored question. Find out more about how our assessors assess and how we select applications for funding.

You must answer all questions. Your answer to each question can be up to 400 words long.

You must not include any website addresses or links (URLs) in your answers. If you do, your application will be made ineligible.

Question 1. Applicant location (not scored)

You must state the name and full registered address of your organisation and any partners or subcontractors working on your project.

We are collecting this information to understand more about the geographical location of all applicants.

Question 2. Animal testing (not scored)

Will your project involve any trials with animals or animal testing?

You must select one option:

• Yes

• No

We will only support innovation projects conducted to the highest standards of animal welfare.

Further information for proposals involving animal testing is available at the UKRI Good Research Hub and NC3R’s animal welfare guidance.

Question 3. Permits and licences (not scored)

Will you have the correct permits and licences in place to carry out your project?

We are unable to fund projects which do not have the correct permits or licences in place by your project start date.

You must select one option:

• Yes

• No

• In process of being applied for

• Not applicable

Question 4. Need or challenge

What problems or opportunities will your project address relating to UK semiconductor hardware development supporting the critical technologies?

Explain:

• the main motivation for the project

• the business need, technological challenge or market opportunity

• whether you have identified any similar innovation and its current limitations, including those close to market or in development

• any work you have already done to respond to this need, for example, if the project focuses on developing an existing capability or building a new one

• the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations

Question 5. Approach and innovation

What approach will you take, where will the focus of the innovation be and how will this support semiconductor hardware development for the critical technologies?

Explain:

• how you will respond to the need, challenge or opportunity identified

• how you will improve on any similar innovation that you have identified

• whether the innovation will focus on existing technologies in new areas, the development of new technologies for existing areas, or a totally disruptive approach

• the freedom you have to operate

• how this project fits with your current product, service lines or offerings

• how it will make you more competitive

• the nature of the outputs you expect from the project, for example, reports, demonstrator, know-how, new process, product or service design, and how these will help you to target the need, challenge or opportunity identified

You can submit one appendix to support your answer. It can include diagrams and charts. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 6. Team and resources

Who is in the project team and what are their roles?

Explain:

• the roles, skills and experience of all members of the project team that are relevant to the approach you will be taking

• the resources, equipment and facilities needed for the project and how you will access them

• the details of any vital external parties, including subcontractors, who you will need to work with to successfully carry out the project

• if your project is collaborative, the current relationships between project partners and how these will change as a result of the project

• any roles you will need to recruit for

You can submit one appendix, with a short summary of the main people working on the project to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 7. UK semiconductor market awareness

What does the market or markets you are targeting look like?

Describe:

• the target markets for the project outcomes and any other potential markets, either domestic, international or both

• the size of the target markets for the project outcomes, backed up by references where available

• the structure and dynamics of the target markets, including customer segmentation, together with predicted growth rates within clear timeframes

• the target markets’ main supply or value chains and business models, and any barriers to entry that exist

• the current UK position in targeting these markets

• the size and main features of any other markets not already listed

If your project is highly innovative, where the market may be unexplored, describe or explain:

• what the market’s size might be

• how your project will try to explore the market’s potential

Question 8. Outcomes

How are you going to grow your business and increase long term productivity as a result of the project?

Explain:

• your current position in the markets and supply or value chains outlined, and whether you will be extending or establishing your market position

• your target customers or end users, and the value to them, for example, why they would use or buy your product

• how you are going to profit from the innovation, including increased revenues or cost reduction

• your strategy for targeting the other markets you have identified during or after the project

• any likely collaborative outcomes and how these will be exploited

If there is any research organisation activity in the project, describe:

• your plans to spread the project’s research outputs over a reasonable timescale

• how you expect to use the results generated from the project in further research activities

Question 9. Wider impacts

What impact might this project have outside the project team?

Describe and, where possible, measure the economic benefits from the project such as productivity increases and import substitution, to:

• external parties

• customers

• others in the supply chain

• broader industry

• the UK economy

Describe and, where possible, measure any expected:

• impact on government priorities

• environmental impacts, either positive or negative

• regional impacts of the project

Describe any expected social impacts, either positive or negative, on, for example:

• quality of life

• social inclusion or exclusion

• jobs, such as safeguarding, creating, changing or displacing them

• education

• public empowerment

• health and safety

• regulations

• diversity

Question 10. Project management

How will you manage your project effectively?

Explain:

• the main work packages of your project, indicating the lead partner assigned to each and the total cost of each one

• your approach to project management, identifying any major tools and mechanisms you will use to get a successful and innovative project outcome

• the management reporting lines

• your project plan in enough detail to identify any links or dependencies between work packages or milestones

You must submit a project plan or Gantt chart as an appendix to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 11. Risks

What are the main risks for this project?

Explain:

• the main risks and uncertainties of the project, including the technical, commercial, managerial and environmental risks

• how you will mitigate these risks

• any project inputs that are critical to completion, such as resources, expertise, and data sets

• any output likely to be subject to regulatory requirements, certification, ethical issues and other requirements identified, and how you will manage this

You must submit a risk register as an appendix to support your answer. It must be a PDF no larger than 10MB. It can be up to two A4 pages and must be legible at 100% zoom.

Question 12. Added value

How will this public funding help you to accelerate or enhance your approach to developing your project towards commercialisation? What impact would this award have on the organisations involved?

Explain:

• what advantages public funding would offer your project, for example: appeal to investors, more partners, reduced risk or a faster route to market

• the likely impact of the project outcomes on the organisations involved

• what other routes of investment or means of support you have already engaged with and why they were not suitable

• how any existing or potential investment or support will be used in conjunction with the grant funding

• what your project would look like without public funding

• how this project would change the R&D activities of all the organisations involved

Question 13. Costs and value for money

How much will the project cost and how does it represent value for money for the team and the taxpayer?

In terms of your project goals, explain:

• your total eligible project costs

• the grant you are requesting

• how each partner will finance their contributions to your project

• how this project represents value for money for you and the taxpayer

• how it compares to what you would spend your money on otherwise

• the balance of costs and grant across the project partners

• any subcontractor costs and why they are critical to your project

3. Finances

Each organisation in your project must complete their own project costs, organisation details and funding details in the application. Academic institutions must complete and upload a Je-S form.

For an overview on what costs you can claim, see our project costs guidance. Note this is general guidance, for specific guidance please see the eligibility section in this competition. You can also view our application finances video.

4. Project Impact

This section is not scored but will provide background to your project.

Each partner must complete the Project Impact questions before being able to submit the application.

More information can be found in our Project Impact guidance and by viewing our Impact Management Framework video.

Innovate UK complies with the requirements of UK GDPR and the Data Protection Act 2018, and is committed to upholding data protection legislation, and protecting your information in accordance with data protection principles.

Assessment

Your application will be reviewed by three independent assessors based on the content of your application and their skills or expertise relevant to your project. All of the scores awarded will count towards the total score used to make the funding decision unless you are notified otherwise.

You can find out more about our assessment process in the General Guidance.

Your submitted application will be assessed against these criteria:

Developing Semiconductor Hardware For Critical Technologies - Assessor guidance for applicants.pdf

Background and further information

Semiconductors are one of the five technologies of tomorrow. They are critical to the UK’s economic and national security and to the strategic advantage that the UK will secure on the global stage.

These critical technologies are outlined in UK Science and Technology Framework.

The UK semiconductor strategy published by the previous government in May 2023 had key themes: Technological innovation in UK strengths, Growth and job creation in domestic landscape, and international collaborations with aligned ecosystems.

The recent green paper launched by the UK Government in October 2024, 'Invest 2035: The UK’s Modern Industrial Strategy’ highlights growth driving sectors including: Advanced Manufacturing, Clean Energy, Defence, and Digital and Technologies. All of which rely on semiconductors to achieve the government’s ambitions and growth mission.

A recent report by Perspective Economics highlights the UK’s semiconductor sector, which includes over 200 companies in research, design, and manufacturing that generated £9.6 billion in revenues in 2022. This represents approximately 2% of global semiconductor revenues, of which more than 40% (£4.1 billion) was generated by UK headquartered companies.

Future scenarios suggest that dedicated UK semiconductor revenues could be up to £17 billion by 2030.

Research, Development and Innovation Streamlined Scheme Information

This award is being offered under the Research, Development and Innovation Streamlined Subsidy Scheme in accordance with section 10(4) of the Subsidy Control Act 2022.

Projects funded must meet the following definition(s):

Category 1 - Feasibility study

The evaluation and analysis of the potential of a project, which aims at supporting the process of decision making. This is done by objectively and rationally uncovering its strengths and weaknesses, opportunities and threats, as well as identifying the resources required to carry it through and ultimately its prospects for success.​

Briefing recording and slides

Online briefing: watch the recording.Briefing slides are now available to download here:

Applicant Briefing Semiconductor Hardware for Critical Technologies - Scale-Up.pdf

What happens if you receive a grant offer

If you have passed your initial assessment and have received an email with a grant offer, you will be asked to complete the project set up process on the Innovation Funding Service (IFS).

We will ask for information that will allow us to undertake mandatory checks on your organisation and the eligibility of your costs, as well as review the documentation for your project.

You must follow the unique link embedded in your email notification. This takes you to your project's dedicated IFS Set Up portal, where we gather the information required to set up your project.

Watch our video on what steps there are before a project starts or read more about Project Setup in our general guidance.

If your application is unsuccessful

If you are unsuccessful with your application this time, you can view feedback from the assessors. This will be available to you on your IFS portal following notification.

Sometimes your application will have scored well, and you will receive positive comments from the assessors. You may be unsuccessful as your average score was not above the funding threshold or your project has not been selected under the portfolio approach if this is applied for this competition.

We would like to remind you that eligible non-funded business can still benefit from fully funded and bespoke support from the Innovate UK Business Growth service.

Find a project partner

If you want help to find a project partner, contact Innovate UK Business Connect.

Support for SMEs from Innovate UK Business Growth service

Innovate UK Business Growth helps innovation focused businesses make the best strategic choices and access the right resources, in order to grow and ultimately achieve scale.

Our innovation and growth specialists provide our fully funded and bespoke support to clients nationwide. Visit the service’s website to discover whether you could benefit from this advisory support, which is available to Innovate UK funded and non-funded businesses alike.

Protecting your innovation

A Secure Innovation campaign has been developed to help founders and leaders of innovative startups protect their technology, competitive advantage, and reputation.

This was developed by UK’s National Protective Security Authority (NPSA) and the National Cyber Security Centre (NCSC).

Data sharing

This competition is operated by Innovate UK.

Innovate UK is directly accountable to you for its holding and processing of your information, including any personal data and confidential information. Data is held in accordance with our own policies.

Innovate UK may also share any relevant information submitted and produced during the application process concerning your application with Innovate UK’s national and regional UK third parties and partners. For more information see how we handle grant applicant and grant holder data.

Innovate UK and Innovate UK Business Connect will be data controllers for personal data submitted during the application.

Innovate UK’s Privacy Policy

Innovate UK Business Connect Privacy Policy

Innovate UK complies with the requirements of UK GDPR and the Data Protection Act 2018, and is committed to upholding data protection legislation, and protecting your information in accordance with data protection principles.

The Information Commissioner’s Office also has a useful guide for organisations, which outlines the data protection principles.

Contact us

If you need more information about how to apply or you want to submit your application in Welsh, email support@iuk.ukri.org or call 0300 321 4357.

Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Note that the closing date for this competition is 29 May and our offices will be closed 26 and 27 May.

Innovate UK or any of our partners will not tolerate abusive language in any written or verbal correspondence, applications, social media or any other form that might affect staff.