Catapults
Catapult Network Cell and Gene Therapy Connected Places Digital Energy Systems High Value Manufacturing Medicines Discovery Offshore Renewable Energy Satellite Applications
Search

Building on a semiconductor success story in the South West

Date: 06.08.2024

Topics: Clusters

Aerial view of a sprawling city with a river cutting through its center. The city features a mix of modern and historic buildings, lush green spaces, and a winding network of streets and bridges. Surrounding areas consist of suburbs and patches of greenery. - CSA Catapult
A man wearing a blue blazer and light blue shirt stands in an office environment. He is holding a pair of glasses in his left hand, looking to the side as if engaging with someone off-camera. The background features elegant geometric patterns. - CSA Catapult

Martin McHugh, CEO at Compound Semiconductor Applications (CSA) Catapult lifts the lid on a flourishing semiconductor sector in the South West of England and describes how the Catapult can ensure future success. 

Earlier this year I attended a round table discussion in Bath with a group of semiconductor start-ups from across the South West. 

It was a fantastic event with lots of great ideas about how the sector can grow in the coming years. 

Sitting at the table with the founders and chief executives, two things struck me immediately. 

The first was the quality and breadth of the technologies and applications that were represented. One company, for example, was building photonic integrated circuits to help treat age-related macular degeneration (AMD) whilst another was developing state-of-the-art sensors to detect gas leaks at industrial sites. 

The second was the energy and enthusiasm of the young entrepreneurs in the room and the passion they showed for their technologies and the local ecosystem. 

I left the event feeling extremely positive and confident that these companies, and the wider South West region, had an exciting and prosperous future. 

Power lab

Strong foundations

The success of semiconductor companies in the region isn’t coincidental. It can be traced back to 1972 when Fairchild Semiconductor International established a base in Bristol.  

Fairchild was a semiconductor pioneer and one of the first companies to identify Bristol as a place of technical innovation. 

Since then, the South West has become a breeding ground for start-ups and SMEs and a magnet for multinationals.  

Start-ups such as Blu Wireless, XMOS and Graphcore have received multi-million pounds’ worth of investment, whilst Broadcom, HP Labs, Infineon and Qualcomm have located to the region. 

Affectionately known as “Silicon Gorge”, the region is fast becoming a semiconductor powerhouse. 

A recent report commissioned by the Western Gateway – a pan-regional partnership that also extends into South Wales – revealed that the regional economy will grow faster than any other part of the UK economy, outside of London, over the next five years. 

However, the report flagged that the region is being held back by a lack of investment and is missing out on between £3m and £9m in private sector investment per businesses per year on average, when compared to other parts of the UK. 

A group of men in business attire are walking and conversing outside. The man on the right, wearing a blue suit and a tie, is gesturing with his hand while speaking to another man in a similar suit. Other people in suits are visible in the background. - CSA Catapult

Catapulting to success

As a Catapult that works with SMEs and start-ups every single day, we are aware of the challenges they face when leveraging private investment. 

This is one of the main reasons we decided to establish our Future Telecoms Hub in Bristol. We knew the area had a strong academic and industrial presence, specifically in the field of compound semiconductors, and would therefore benefit greatly from our expertise. 

Since 2022, nearly a quarter of our customers and partners have come from the South West alone. Of the 37 SMEs we have worked with in the region, they have received the highest amount of private investment (£137.5m) compared to other regions. 

The case for collaborating with CSA Catapult is compelling. 

Our most recent data shows that, on average, companies we have worked with have attracted an average annual investment of £84m from the private sector and £22m from the public sector. 

A counterfactual group of companies that we have not worked with raised, on average, £56m annually from the private sector and £10.5m annually from the public sector in comparison. 

 

Looking to the future

The South West is fertile ground for innovation with a highly-skilled workforce and huge potential to grow further. 

It is also home to world-leading universities working at the cutting edge of semiconductor science and technology. 

Through our Future Telecoms Hub in Bristol, we’ve already signed several research agreements with the University of Bristol to help develop state-of-the-art power amplifiers for future telecoms networks and cutting-edge quantum hardware. 

Our role as a trusted neutral convener is to bring this ecosystem together and find opportunities for collaboration, as well as championing the region at every opportunity. 

It was extremely encouraging to see the new Labour government meet with the 12 regional mayors on its fifth day in office and spell out the “absolutely central” role they will play in generating growth for the economy. 

With more power being transferred from Westminster to local government, it provides a perfect opportunity to work more closely with decision makers who have a more detailed understanding of the needs, requirements and potential of our regions. 

Clusters are a major contributor to economic growth and the source of well-paid jobs. They also provide networks, connections, investment and talent that are very difficult to replicate elsewhere or in isolation.  

The success story of the South West demonstrates this perfectly. The next chapter of this story is now waiting to be written. 

CSA Catapult hosts a regular series of semiconductor meet-ups in the South West for anyone involved in the industry to share ideas and explore collaboration opportunities. The next event is taking place on 12 September (17:30-20:00) at the Harbour Hotel in Bristol. For more information and to sign up, click here.  

Previous Article Next Article