The UK government has announced a £10 million investment in the domestic semiconductor sector, with up to 40 businesses set to benefit.

Backed by Innovate UK, the fund will accelerate development of next-generation chips that power products from smartphones and cars to medical devices and renewable energy systems.

Companies supported include Paragraf, whose graphene-based devices could extend mobile battery life and cut energy use in transport and defence, and Silicon Microgravity, which is developing satellite-free navigation tools for wearables and robotics.

Tech Minister Kanishka Narayan said the funding would boost national resilience, create high-skilled jobs and cement Britain’s role in a global market worth hundreds of billions.