The Council for Science and Technology (CST) urges the UK to seize a “once-in-20-years opportunity” to build a world-class AI chip design industry, or risk becoming a nation that simply consumes, rather than creates, the technology that will define our future.
In a report published this week, the council argues the UK must get serious about designing its own AI chips. This isn’t just about economic growth; it’s about national security and sovereignty.
The market for specialised AI chips is exploding, set to grow by 30% every year and make up more than half of the entire global semiconductor industry by 2030. The question is, will the UK have a piece of that pie?
It’s about artificial actual intelligence
Let’s get one thing straight: this isn’t about trying to build giant, multi-billion-dollar manufacturing plants to compete with global titans.
The CST makes it clear that we often confuse chip design with chip manufacturing, and they are two completely different ball games. While a factory costs a fortune, designing a chip is a creative, knowledge-intensive process that plays to the UK’s strengths.
“There is a national tendency to conflate chip design (one of the fastest growing industries in the world) with chip manufacturing (one of the most expensive industries in the world),” the report points out.
The goal is ambitious but achievable: create the right conditions for UK companies to design 50 new AI chip products in the next five years. But to get there, we need to tackle some serious gaps in skills, funding, and strategy.
UK faces AI chip design skills gap
The biggest roadblock is that we simply don’t have enough people to do the work. The UK’s current chip industry is already short about 7,000 designers. To hit that target of 50 new AI chips, we’d need another 5,000 designers – bringing the total to 12,000 – in just five years.
Right now, we’re not even close to producing those numbers.
To fix this, the report urges the government to fund more university bursaries and fellowships to tempt students into the field. It also calls for a top-tier, nationally-recognised chip design course that can be rolled out across the country, getting more people skilled up, fast.
There’s also a golden opportunity in optoelectronics, the tech that uses light to transmit data, which is required for next-gen AI systems and an area where the UK already quite literally shines.
Realism and a coordinated plan
Of course, ambition needs to be matched by a smart, coordinated strategy. The CST report criticises the current siloed approach where different government departments, like the DSIT and the Ministry of Defence, work on their own plans despite having the same goals. They need to work together to spot opportunities for technology that serves both commercial and defence needs.
Industry experts agree that the focus on design is the right one, but they also caution that it won’t be a walk in the park.
Phillip Kaye, Co-Founder of Vespertec,…
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