TL;DRThe UK will make “strategic purchases” of AI chips from British firms to keep them in the country. Kendall aims to build a £37B chip industry with 5% global share.
The UK government will offer to buy AI chips directly from British technology companies in a bid to keep them in the country. Technology Secretary Liz Kendall will outline plans for “strategic purchases” of semiconductor equipment from UK-based firms at London Tech Week this week, the Telegraph reported. The initiative includes access to taxpayer-backed funding and investment in skills to retain workforces in Britain.
The announcement is part of a broader AI hardware plan that targets 5% of the global chip market, which would translate to roughly £37 billion in revenue and tens of thousands of jobs. The government has already committed £100 million through ARIA’s scaling compute programme, including £50 million for a scaling inference lab where British startups can test and demonstrate that their hardware works.
The urgency is clear. Britain keeps losing its best chip companies to foreign buyers. SoftBank acquired Graphcore in 2024. Qualcomm bought Alphawave IP for $2.4 billion last year. Arm, the UK’s most valuable chip designer, chose New York for its main listing in 2023. Each departure weakened the case that Britain can retain a semiconductor industry of its own.
