The UK government plans to spend £1 billion ($1.24bn) on supporting domestic semiconductor development.
British businesses will get £200m between them from 2023 to 2025, with the rest set to be handed out through to the end of 2033.
The UK government's National Semiconductor Strategy is significantly smaller than the US Chips Act ($52bn) and the EU's European Chips Act ($46.3bn), as well as subsidies in China, South Korea, and elsewhere.
Given that a single chip fab complex can cost upwards of $10bn, the strategy instead aims to focus on areas that offer "targeted and value for money," such as R&D, design and intellectual property (IP), and compound semiconductors.
Chloe Smith, Secretary of State for Science, Innovation, and Technology, said: "Britain is already a world leader when it comes to researching and designing semiconductor technology – our new strategy will double down on these core strengths to create more skilled jobs, grow our economy, boost our national security and cement the UK’s status as a global science and technology superpower."
This week Prime Minister Rishi Sunak also announced a semiconductor partnership with Japan, as part of the broader Hiroshima Accord pact.
To start, the UK’s Research and Innovation department will work with Japan’s Science and Technology Agency on a joint £2m ($2.5m) investment in 2024, to support fundamental chip technologies.