Following on from our Seven-Point Plan for UK Semiconductor Success, we have prepared the below document to encourage the government and business community of the UK to seek its future in opportunity-rich technologies and in establishing this country as an important hub in the ecosystem for next-generation semiconductors.

Driving Disruptive Innovation for UK Leadership in Semiconductor Technologies – March 2025

Semiconductors power everything. The UK has a unique chance to lead in next-generation technologies by investing strategically in disruptive materials, processes, and innovations. By prioritising the creation of measurable value, we can build long-term growth through focused investments.

1 Graphene: A Gateway to UK Leadership

Graphene, a uniquely UK-developed technology, can drive leadership in:

• Healthcare: Revolutionising NHS resource allocation with point-of-care solutions.
• Environment: High-efficiency electrification via advanced current-sensing solutions.
• Future Computing: Reliable quantum computing through extreme condition sensing and
  faster and more efficient future compute elements.
• Space: Sensing solutions for harsh, dynamic environments.
• Communications: Terahertz 5G/6G homegrown infrastructure.

As the next generation electronic material, graphene is the key to delivering solutions that position the UK as a leader in the electronics world.

2 Paragraf: A Home-Grown Deeptech Leader

Paragraf’s Roadmap: From Hall Sensors to Next-Gen Compute: GHS → GFET → Graphene Solid State Devices → 2D Compute Components

• Secured over £65 million of funding (through Series B round in 2022) to take the company from inception to manufacturing to scaling, in the UK.
• Delivered the world’s first graphene-based, scalable electronics devices using standard semiconductor equipment.
• Leading the market with third-generation off-the-shelf and custom devices.
• Development of graphene electronics is prioritised globally, with nations like China recognising their disruptive potential.

3 Lessons from the Past: Invest in Solutions, Not Subsidies

The BBC Micro story offers a clear template: £4M (~£14M today) in 1981 educated 2–5M people*, created ARM, and contributed a conservative estimate of £200–500B to the UK economy.

What worked? Solution-oriented contracts with measurable outcomes driving strategic vision. To replicate this:

• Follow NASA/DARPA models: Use contracts to deliver innovation in healthcare, electrification, defence, aerospace and space.
• Align priorities: Unite government, academia and industry.
• Avoid pitfalls: Skip risky investments with unclear returns or limited UK ownership.
• Focus on solutions: Invest in outcomes, not one-off subsidies.

* Figures are Paragraf estimates generated with help and confirmation from historical sources and AI.

4 Opportunities for Semiconductor Disruption

• Innovative Materials: Leapfrog current technologies with graphene and other advanced materials.
• Build on Strengths: UK compound semiconductors are strong but have global competition and need scalable, sustainable growth; the UK leads in graphene electronics.
• Specialised Chips: Meet demand for faster, low-power solutions in AI, healthcare and communications.
• Disruption as Strategy: Achieve leadership by innovating, not competing directly with incumbents (e.g., by focusing on pioneering materials rather than competing on cost with silicon fabs).

5 Clear Asks: Is the Government Helping?

The business community can focus its influence on government to ensure that it is driving impactful innovation:

Focus on Leading Strategic Investments

• Invest where the impact will be maximized. The £1 billion over 10 years promised by the government’s 2024 Semiconductor Strategy is welcome but it risks being spread too thin and allocated towards segments of the market where it will be dwarfed by investments from other sources.
• Invest in disruptive technologies like graphene-based solutions with measurable outcomes clearly defined. How does the government define and measure investment success?
• Invest in innovation to benefit strategically critical areas such as healthcare, computing, the environment and space.

Are Barriers Being Removed?

• Is there more capital available to accelerate UK technology leadership?
• Are regulations simplifying the process of scaling up (e.g., visas, energy and infrastructure)?

Can We Benchmark Against Past Successes?

• Are we following the BBC Micro’s success: Invest in outcomes, not subsidies.
• Are projects aligned with UK strengths and strategic independence?

6 Closing: Let’s Lead Together

The UK can lead the next semiconductor revolution by leveraging homegrown technologies like graphene. By investing in solutions and removing barriers, we can lead at the heart of tomorrow’s technologies and avoid following the fate of companies like Arm (2016), CSR (2015), Graphcore (2024), Imagination (2017) and Newport Wafer Fab (2021) that have seen much of the benefit of their success exported.

The UK was first to mass-produce graphene-based chips. Let’s invest to lead, not lament, in 20 years’ time.