Strengthening the UK’s semiconductor supply chain: Reflections from our latest industry event
27th March 2026
Last week, CSconnected welcomed over 40 organisations to CS² in Newport in the heart of the cluster for a day of insight, collaboration and connection across the UK’s compound semiconductor supply chain.
Bringing together businesses, researchers, policymakers and investors from across South Wales and beyond, the event highlighted not only the strength of the existing ecosystem but also the scale of opportunity ahead.
A growing and high-value sector
A key theme throughout the day was the high-value nature of the semiconductor industry. As a knowledge- and capital-intensive sector, it represents a significant opportunity for the UK to capture greater economic value. Comparisons shared during the event showed that semiconductor businesses can generate substantially higher revenue per employee than many other sectors, underlining the strategic importance of continued investment and support.
At the heart of this is CSconnected’s supply chain development programme. The fourth and final funding call, launched during the event, is focused on strengthening supply chain relationships and building resilience across the region, ensuring that the UK can compete where it matters most.
Insights from across the ecosystem
Presentations from a range of organisations showcased the breadth of expertise and innovation across the cluster and the wider UK.
Professor Lenny Koh from the University of Sheffield explored how sustainability is being embedded into semiconductor manufacturing, including research into more sustainable wafer production. This work is critical in supporting the UK’s net zero ambitions and futureproofing the sector for 2050 and beyond.
Tudor Williams of Filtronic provided insight into the company’s role in global markets, including work with organisations such as SpaceX, and highlighted the importance of the defence and space sectors as key drivers of demand.
Ann Hughes of Pegasus Chemicals, a beneficiary of the programme’s first funding round, spoke about the realities of supply chain disruption. Working with air-sensitive chemistry, she emphasised the importance of a reliable, UK-based supply chain, particularly in the face of geopolitical challenges. She also highlighted the role of high-purity, consistent supply and the importance of recycling, while noting how CSconnected funding has already supported improvements in their operations.
Mike Petty of Loughborough Surface Analysis outlined the specialist analytical capabilities available to the sector, while Lloyd Peto from Nanoscope Services demonstrated the critical role of service providers supporting companies across the UK and Europe.
The first session concluded with a thought-provoking contribution from Dr Leshan Uggalla from the University of South Wales, who addressed one of the sector’s biggest long-term challenges: talent. Drawing parallels with the region’s industrial heritage, he highlighted the need to better communicate the opportunities within semiconductors to younger generations. If industries like space capture imaginations with rockets and exploration, the semiconductor sector must find its own compelling narrative to inspire future talent, and engage not just students, but also the families who influence their decisions.
Driving the UK’s future industries
The afternoon also featured a series of industry pitch sessions, showcasing the breadth of capability across the ecosystem, from open-access university fabrication services and specialist semiconductor design tools to advanced semiconductor services and emerging AI-powered operational solutions.
The day concluded with a panel discussion on driving the UK’s future industries, focusing on the intersection of semiconductors with automotive, AI and defence.
Chaired by Howard Rupprecht (CSconnected), the panel brought together Tudor Williams (Filtronic), Catherine Lundie (Novomorphic), Tracy Wotherspoon (Microchip Technology) and Nick Russel (RAM Innovations). Together, they explored both the opportunities and challenges facing the Welsh and wider UK semiconductor ecosystem in supporting these critical sectors.
A central message was clear: the UK cannot compete in every area, but it must excel where it has strength. Achieving this will require targeted investment, stronger support for scale-ups, and a more coordinated approach across the ecosystem.
Panellists discussed the challenges businesses face when scaling, particularly the lack of funding at critical growth stages. In highly competitive global markets, companies risk ‘chasing their tail’ without the right backing to grow effectively.
Artificial intelligence was highlighted as a powerful tool within the industry, supporting design, training and productivity, but not as a replacement for engineers. Concerns around intellectual property and data security mean its use must be carefully managed.
In defence, the need for consistency was emphasised. For SMEs in particular, fluctuating demand creates instability, making it difficult to build the sovereign capabilities the UK requires.
Skills and workforce development also emerged as a key issue. There remains a gap between academic training and industry needs, alongside a shortage of experienced professionals. While demand for entry-level roles is strong, businesses often lack the capacity to provide the training needed to bridge this gap.
Looking ahead
As discussions turned to what the UK needs next, several priorities emerged: supporting business expansion, investing in skills, and building on existing areas of expertise rather than spreading resources too thinly.
Above all, the importance of collaboration was a consistent theme throughout the day. The strength of the South Wales semiconductor cluster lies in its connectivity, and continued partnership will be key to unlocking future growth.
The fourth and final call of the CSconnected Supply Chain Development Programme is now open, offering grants of up to £100,000 to support projects that strengthen the UK’s semiconductor supply chain.
To find out more and apply, click here.
Notes to editors:
Adam Gettinby / Zoe Fawcett: CSconnected@purplefish.agency
Tel: 0117 925 1358
About CSconnected
CSconnected is a not-for-profit organisation focused on expanding the South Wales compound semiconductor industry. As the world's first compound semiconductor cluster, CSconnected brings together a unique community of academic institutions, prototyping facilities, and global high-volume manufacturing capabilities. The Cluster fosters cutting-edge research, innovation and global leadership, positioning Wales and the UK to compete globally in critical sectors such as 5G communications, autonomous and electric vehicles, advanced medical devices, sustainable technology and next-generation consumer electronics.
Website: csconnected.com
LinkedIn: CSconnected
YouTube: @CSconnected
