Microelectronics: The UK’s massive opportunity
22 October 2026
Microelectronics produces technology we don’t necessarily see, but that we can’t do without. These nano- to micrometre-sized components in semiconductors, photonics, and embedded systems underpin everything from healthcare and transport to telecoms, defence, AI, and emerging technologies like quantum. As demand for these technologies grows, so does the need for public and private support.
To showcase and explore the latest in this critical field, Microelectronics UK brings the industry together, including R&D, manufacturing, packaging, testing, and deployment.
Last week, the team was on the ground at the event, where our client CORNERSTONE, the silicon photonics foundry located at the University of Southampton, was exhibiting alongside the university’s tech startup accelerator, Future Worlds.
Photonics: the case for buy-in
The tone was set from the first day. Now is the time for industry and government to get behind photonics as a critical, enabling technology.
The numbers back this up. A panel on UK photonics distribution revealed some staggering truths. Around 50% of venture-funded photonics startups in the UK come out of universities, with strong projections that the UK photonics industry at large could have an annual output of over £20bn in 2026. Yet while photonics is firing on all cylinders and is already a key component underpinning critical industries, the government is still to recognise its power as a GDP driver.
The way to encourage government support is to focus on the applications available this year, in three years, and in five years in order to show not only the immediate impact, but the sustained positive benefits photonics has in our key industries.
Telecoms and defence are already embedded in photonics. To open up untapped markets such as data centres and system integration, the conversation needs to centre on business outcomes for those specific industries and GDP – the topics that resonate from a business perspective with early adopters and investors. What efficiencies are gained when using photonic technologies, what ROI do they bring? Communicating the end-user benefits will help to demonstrate the commercial value of photonics, making it easier for businesses and investors to see where the technology fits, why it matters, and why it is worth adopting.
When it came to government buy-in, there was a buzz in the air, with the eagerly anticipated Photonics Roadmap due to be published any day now. This will offer the current government a set of recommended steps to help increase the UK’s leadership in photonics and its enabling technologies. Excitement around photonics is growing, and the government is paying closer attention. For photonics and photonics-adjacent companies, that means clear positioning and messaging will matter more than ever as they move into the spotlight. Photonics has long operated behind the scenes, but that looks set to change.
Scale, skills, and finding the UK’s niche
In a talk by Andy McLean, Head of the UK’s Semiconductor Centre, the case for the UK’s semiconductor industry was similarly compelling.
According to 2025 stats, the UK now has more than 700 semiconductor and semiconductor-related companies, growing by almost one hundred in a year, and the industry generated £10.6 billion in revenue.
These figures aren’t so surprising given the overall consensus that there is no better place for semiconductor research than the UK, with infrastructure that generates world-class IP. But this number could be even higher if gaps in skills, workforce investment, and international partnerships are addressed. It’s a scaling problem, and not one unique to the UK, with countries around the world struggling with skills gaps.
From neuromorphic computing, to quantum sensing, to in-orbit photonics manufacturing, the scale of industries and applications microelectronics touches is staggering. These emerging fields offer new applications where there is no current ‘leader’ and therefore represent areas the UK can excel in. We will never compete with giants like the US and China, or even companies like NVIDIA, when it comes to manufacturing semiconductors at scale, but by pinpointing specific applications where we can excel due to our expertise in deep R&D, the UK can carve a niche for itself.
Everyone loves an afterparty
To mark the end of the first day, we were honoured to attend CORNERSTONE’s After Hours Reception.
The evening event was hosted by Zoe Kleinman, Tech Editor at the BBC. We joined members of the photonics community – from startups, innovators, investors, academia and industry – to unpack the latest developments in silicon photonics and how we can support emerging startups in the field.
We heard from Professor Callum Littlejohns, Deputy Director, and Ruth Churchill, Impact Manager at CORNERSTONE, as they discussed the new C-PIC Future Leaders programme, bringing emerging researchers and technical specialists together to explore industry-driven challenges and develop ideas that could help shape the next generation of quantum-ready silicon photonics platforms.
Lia Li, Founder of Zero Point Fusion, and Eric Van der Kleij, Partner at deep tech investment fund EdenBase, also came together for a dynamic and honest discussion about startup life and what investors are really looking for.
What stood out across the talks and conversations on the floor and at the reception was the shifting perspective of microelectronics. It’s no longer a background technology, it is at the forefront of innovation with massive economic potential. With a roadmap on the way and growing awareness behind the sector, the focus now is on turning the UK's research strength into near-term applications and real business outcomes.