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Compound semiconductors key to securing UK’s superpower status in artificial intelligence

Date: 13.10.2025

Topics: AI, Data centres

Digital map of the UK with glowing network lines, abstract tech patterns, and subtle hints of AI integration. - CSA Catapult
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CSA Catapult sets out how, with investment and ambition, we will deliver world-leading sustainable AI technology.

Artificial intelligence (AI) is revolutionising our lives – in our homes, our offices and our factories, in our cars, on our wrists and in our pockets.

Its impact will only increase as technology develops, with estimates suggesting we will have more than 32 billion AI-driven, interconnected devices worldwide by 2030.

The US-UK Tech Prosperity Deal unveiled in September includes £31 billion of potential investment into the UK in sectors including AI and quantum computing.

Worldwide, the AI market is projected to grow from $150 billion in 2023 to $1.5 trillion by the end of the decade and the UK is in a strong position with the expertise and the facilities to make the most of this expansion.

Man in a black leather jacket discusses AI into a microphone, gesturing with his hand, against a green background. - CSA Catapult

With Google’s announcement of a £22bn spending package, the company’s biggest outside the USA, Chief Executive Satya Nadella said AI investment would drive UK growth and productivity.

And as he declared the UK will become an “AI superpower”, chip-making giant Nvidia’s Chief Executive Officer Jensen Huang said Britain had the expertise and research facilities to excel in AI and Nvidia would be working with UK infrastructure company Nscale to build data centre capacity.

Data centres will be the backbone of AI infrastructure and, with 514, the UK is ranked number three in the world after the USA and Germany.

As AI expands, so will the need for faster, more efficient computers. Huge amounts of energy will be needed to power and cool data centre servers.

Globally, data centre energy consumption could account for up to 8% of the world’s electricity demand by 2030, according to the International Energy Agency. Up from 1% today.

While silicon-based technologies have advanced significantly to meet demand, they are already reaching their limits in terms of performance and energy efficiency.

Compound semiconductors such as silicon carbide and gallium nitride will allow faster data processing and greater energy efficiency. They are crucial if we are to fully realise the potential of AI while minimising its impact on the environment.

A robotic arm holds a microchip in a high-tech, blue-lit laboratory setting. - CSA Catapult

With properties that are superior to traditional silicon, compound semiconductors will support innovation in:

  • Power electronics, which convert and control electrical power needed for AI. Compound semiconductors are the beating heart of power electronics, ensuring power is delivered in the right form, at the right time and in the right place
  • Photonics – built using compound semiconductors, photonic devices use light to transmit, process and store information, dramatically increasing computing speed and efficiency
  • Radio frequency (RF) technologies – using compound semiconductors, these will improve the speed and efficiency of data transfer in AI applications
  • Quantum AI – the superior performance of compound semiconductors will play a substantial role in using quantum mechanics to speed up AI problem-solving capabilities with wide-reaching implications in areas such as drug discovery and financial modelling
  • Advanced connectivity and communication – the convergence of the 5G mobile network and AI to create seamless communication and intelligent decision-making.

 

The Government’s vision for AI is set out in its AI Opportunities Action Plan, which commits to working with the world’s leading AI companies, as well as the UK’s leading academics, entrepreneurs and start-up businesses to ensure we build sufficient secure and sustainable infrastructure to take full advantage.

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In its white paper, Compound semiconductors: developing the hardware to unlock the UK’s AI action plan, CSA Catapult, the UK’s authority on compound semiconductor applications and commercialisation, explores the critical role they will play in realising the country’s ambitions.

CSA Catapult works with start-ups, SMEs, large organisations and universities to develop and bring new technologies to market faster.

As a not-for-profit research and technology organisation, funded by Innovate UK, it is a trusted neutral partner in a range of industry sectors.

With labs and offices around the UK, it has a world-leading team of experts with significant know-how and experience helping the UK build a world-class AI ecosystem by:

  • Continuing to research, develop and commercialise cutting-edge compound semiconductor products and technologies
  • Supporting start-ups and SMEs to develop next-generation AI hardware, delivering growth and building expertise
  • Helping to identify, shape and develop the skills needed to produce the latest AI hardware, creating a pipeline of talent
  • Acting as a neutral voice on behalf of industry to guide policy and developments

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