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Plans to grow UK chip industry threatened by lack of courses

Decline in degree programmes, student interest and graduate jobs likely to hold back development of UK’s semiconductor industry as government looks to boost economy

Published on
August 26, 2025
Last updated
August 26, 2025
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The government has been told to invest more in semiconductor-related courses if the UK is to become a player in the burgeoning industry, but there are fears it may be too late after decades of dwindling university funding.

Semiconductors – also known as chips – are an essential part of many aspects of modern life, including phones, electric cars and aeroplanes. With the advent of artificial intelligence (AI), they are becoming even more important, providing the processing powers for the burgeoning technology.?

The government has identified the semiconductor industry as a priority area for the UK, with better domestic capabilities likely to support both economic growth and national security.

The Council for Science and Technology, an independent government advisory body, has said the UK could create its own successful AI chip design industry with the “right” investment, but warned the talent pipeline is lacking.

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Currently, the UK graduates around 9,000 electronic engineers per year. “If just 10 per cent become chip designers, we would only produce 4,500 chip designers in 5 years, just over a third of what we will need,” the group said in a?.?

To increase supply, it recommended training more chip designers at undergraduate and master’s level.

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But, after years of decline, reviving the industry and bringing back semiconductor-related courses – once far more common in universities, but now offered by only a few – won’t be easy, experts have warned.?

“The overall strength of what universities can offer in terms of training worries me a little bit,” said Mark Hopkinson, professor in electrical engineering at the University of Sheffield.?

“It’s relatively expensive to put undergraduates through experience in semiconductor fabrication.”

With universities facing mounting financial challenges and under pressure to deliver degrees at a cheaper cost, it seems unlikely there will be a rush to bring these courses back, particularly given the limited demand from students.?

Maurizio Pilu, a member of the Institution of Engineering and Technology’s Digital Futures Policy Centre, agreed that the problem is “three-pronged” – with the lack of courses, students and graduate jobs all contributing to a vicious cycle.??

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“I think there is a need for government to step in to subsidise a market that is not...picking up as much as it should,” he said.?

And “one of the big jobs for universities and the government is to make chip design look attractive as a career option for people”, he continued.?

But, with countries like the US scooping up talent in the semiconductor industry, graduates are likely to move abroad either way, attracted by the higher salaries on offer, Pilu warned.?

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The council also suggested that the government commissions “a nationally curated, high quality chip design course to be replicated across UK universities”.?

Beth McEvoy, research co-investigator on the UKRI-funded Future of Semiconductor R&D project, welcomed the idea but warned that “quality control” would be crucial.?

While the government could look to commission “something off the shelf”, possibly made overseas, “we have a large pool of experts based in our research and development higher education sector in the UK who are well placed to collaboratively advise on this,” she said.??

“In theory, I think it’s really positive. It’s just the quality of the execution.”

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helen.packer@timeshighereducation.com

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