Home / Technology Today / Semiconductors / Heterogeneous Integration a...

visionaries Network Team

20 October, 2026

semiconductors

The UK Semiconductor Catapult is expanding its work on heterogeneous integration, AI hardware and chip development

The UK’s Compound Semiconductor Applications Catapult is now called the Semiconductor Catapult. The new name reflects a wider role, with more support planned for companies developing AI hardware and defence technologies. One area of its work is heterogeneous integration, which brings different chip components together in one package or system.

Developing a chip involves plenty of work beyond the initial design. Engineers need to see how components perform together, check heat levels and find faults during testing. For smaller companies, this work can be difficult without access to specialist equipment. The Catapult plans to give businesses access to facilities and technical support as they work on new products.

The organisation will cover several areas, including advanced packaging, power electronics, thermal management, photonics, optical interconnects, and RF and mixed-signal integration. It operates from sites in Newport, Bristol and Glasgow. The initial work will focus on silicon and integration capabilities. Support for complete systems and small-volume production is expected to come later.

The Catapult has shared further information in its official announcement.

UK Government Funding for Chip Development

The expansion comes as the UK government increases its support for domestic chip development. Published in June, the UK AI Hardware Plan includes £750 million for a national AI supercomputer and £400 million for next-generation AI chips. Of the chip funding, £150 million is intended for novel chips developed by startups and UK companies.

Another £18 million is set aside for hardware security research. The British Business Bank will also back an investment fund with up to £150 million.

The industry has a sizeable presence in the UK. Semiconductor companies generated £10.6 billion in revenue in 2024/25. The sector has 297 companies and employs around 16,350 people.

Some of these companies work with compound semiconductor materials, including gallium nitride and gallium arsenide. These materials are used in communications, photonics and power electronics. Developing chips for these applications can involve demanding specifications and repeated testing. Companies looking for technical support can check the Catapult's products and services page.

Testing is a necessary step before a chip goes into production. Semiconductor testing helps engineers find faults and check whether a chip performs as expected. Companies without their own testing equipment can use external facilities to assess their designs and make changes before moving ahead with manufacturing.

Frequently Asked Questions

1. What is the Semiconductor Catapult?

It is the organisation previously known as the Compound Semiconductor Applications Catapult. Its work now covers a wider range of areas, including AI hardware and defence.

2. What does heterogeneous integration do?

Heterogeneous integration combines different chips or components in one package or system, allowing them to work together.

3. Why do chip developers need semiconductor testing?

Semiconductor testing helps engineers check whether a chip meets its requirements and find faults before production.

4. What are compound semiconductors used for?

A compound semiconductor contains two or more elements. Gallium nitride and gallium arsenide are used in communications equipment, photonics and power electronics.

5. What funding is included in the UK AI Hardware Plan?

The plan includes £750 million for a national AI supercomputer, £400 million for next-generation AI chips and £18 million for hardware security research. The British Business Bank will also back an investment fund with up to £150 million.