Photonics in the UK on track to generate £50bn by 2035!
Electro Optics caught up with the Semiconductor team at the Department for Science, Innovation and Technology (DSIT) to find out more about the Government’s view of the sector.
DSIT: The UK Government has identified photonics as a key technology that supports multiple high-growth sectors including artificial intelligence (AI), quantum, net zero, communications and defence. The 2025 Industrial Strategy positions photonics within the semiconductor strategy as a critical technology for national resilience and economic growth.
According to data from the Photonics Leadership Group, photonics contributes £18.5bn annually to the UK economy and employs 84,800 people, with productivity levels of £101,000 per employee. The sector is forecast to reach £50bn by 2035, driven by strong growth in data centres, sensors and quantum technologies. Photonics is a vital building block for future technologies, underpinning sectors such as smart manufacturing, autonomous systems and high-speed data transmission.
Significant investments that DSIT wants to highlight are:
- £11m for the CORNERSTONE Photonics Innovation Centre (C-PIC) in Southampton and Glasgow.
- £4.2m from DSIT, match-funded by Horizon Europe, for the Chips JU Photonics Pilot Line, involving Cambridge Graphene Centre and CORNERSTONE.
- £160m investment from the UK Government in Glasgow City Region Innovation Zone (GCRIZ) projects, including the National Advanced Semiconductor Packaging and Integration Centre (NASPIC).
These are alongside the other recent semiconductor announcements in the Industrial Strategy which would also apply to photonics, including:
- A new £19m UK Semiconductor Centre, bringing together industry, academia and government to provide cross-sector leadership on semiconductors.
- A £36m UK-wide skills package including a £10m new Centre for Doctoral Training in Future Semiconductor Skills, led by Swansea University.
- A new Chip Design Enablement Programme, providing state-of-the-art tools, talent support and technical expertise to boost innovation in chip design.
In 2022, the UK photonics sector contributed £15.2bn in goods and services to the economy, an increase of 7% over a period of two years, reflecting sustained growth and resilience. By 2024, this figure rose to £18.5bn.
The UK is one of the world’s leaders in optical computing, a field focused on entirely photonic processing and memory. Industrial R&D is thriving, with start-ups such as Optalysys, Salience Labs and Wave Photonics developing cutting-edge applications in photonic computing, AI acceleration and quantum photonics.
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