Semiconductor & Circuit Manufacturing in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: August 2024
SIC SP0.319Revenue
£1.8bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
13,180
Businesses
470
Wages
£XXX.Xm
Semiconductor & Circuit Manufacturing in the UK industry analysis
Semiconductors are necessary chips in numerous applications, including household appliances, consumer electronics, communication equipment and vehicle manufacturing industries. They are also crucial inputs in infrastructure, including traffic lights, alarm systems, medical equipment and solar panels. Although UK companies design and produce many semiconductors, the UK is not a global market leader and contends with intense international competition from microchip giants like Taiwan, China, Japan and the US. Despite this, foreign interest in UK chip manufacturers has increased, with the UK leading the way with start-ups working on semiconductor technologies in Europe. For example, the Newport Wafer Fab, now operating as Vishay Newport Ltd, has had several owners in recent years.
Trends and Insights
- A global semiconductor shortage raises selling prices and propels revenue. With substantial order backlogs for international and domestic manufacturers, semiconductor and microprocessor prices skyrocketed over 2021-22 and 2022-23, propelling revenue hikes of 20.7% and 19.8%, respectively.
- Sales of microprocessors climb, driven by solid export activity. The industry's focus on advanced photolithography and etching techniques has enabled the production of microprocessors with smaller nodes and higher performance, ensuring a competitive advantage.
- The South East has a solid downstream manufacturing presence. It is an important area for the UK's microchip sector, with many electronics research and development centres and a large proportion of fabless electronics manufacturers.
- Manufacturers battle with low-cost imports. Thanks to the cost advantages held by foreign microchip producers, the value of imports is around twice that of industry exports. Imports have increased faster than industry revenue in recent years.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.6 % over the past five years, to reach an estimated £1.8bn in 2024.
Trends and Insights
Offshoring activity hurts revenue prospects, forcing the government to intervene
- Weak economic conditions following the EU referendum in 2016-17 have encouraged some companies to outsource production line elements to countries that can provide manufacturing at lower labour costs and improve efficiencies.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The National Semiconductor strategy lifts revenue prospects
- The UK National Semiconductor Strategy, unveiled in May 2023, reveals a new plan to double down on design, research and advanced chip leadership. Over the 20-year plan, the strategy aims to secure the UK's position as a global science and technology superpower and cement the world-leading strengths of the UK's semiconductor industry.
Biggest companies in the Semiconductor & Circuit Manufacturing in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
IQE plc | 138.0 | |
Nexperia UK Ltd | 134.4 | |
Diodes Inc | 75.6 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Microprocessors, Diodes and Integrated circuits. Microprocessors is the largest segment of the Semiconductor & Circuit Manufacturing in the UK.
Trends and Insights
Sales of microprocessors climb, driven by solid export activity
- Semiconductors or microprocessors, often called central processing units (CPUs), execute instructions and perform computations on electronic devices.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Electronic Component Manufacturing in the UK
- Loaded Electronic Board Manufacturing in the UK
Complementors
- Computer & Peripheral Equipment Manufacturing in the UK
- Solar Panel Manufacturing in the UK
- Electrical Household Appliance Manufacturing in the UK
- Consumer Electronics Manufacturing in the UK
International industries
- Semiconductor & Circuit Manufacturing in the US
- Solar Panel Manufacturing in the US
- Power Automation Products and Other Electrical Equipment Manufacturing in Australia
- Semiconductor Manufacturing in China
Table of Contents
About this industry
Industry definition
The Semiconductor and Circuit Manufacturing industry includes companies that manufacture semiconductors and related devices and parts. Products in this industry include integrated circuits, memory chips, microprocessors, diodes, transistors and other optoelectronic devices.
What's included in this industry?
MicroprocessorsDiodesIntegrated circuitsMemoryOther integrated circuitsCompanies
IQE plcNexperia UK LtdDiodes IncPurchase this report to view all 5 major companies in this industry.
Related Terms
SemiconductorElectric CircuitDiodeIndustry Code
SIC 26.11 - Semiconductor & Circuit Manufacturing in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
A global semiconductor shortage raises selling prices and propels revenue. With substantial order backlogs for international and domestic manufacturers, semiconductor and mic...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Sales of microprocessors climb, driven by solid export activity. The industry's focus on advanced photolithography and etching techniques has enabled the production of microp...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The South East has a solid downstream manufacturing presence. It is an important area for the UK's microchip sector, with many electronics research and development centres an...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Manufacturers battle with low-cost imports. Thanks to the cost advantages held by foreign microchip producers, the value of imports is around twice that of industry exports. ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
A promising post-pandemic performance puts Nexperia in the driving seat. Nexperia posted a vast 43.6% revenue growth over 2022, thanks to increased output and pricing resulti...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of IQE plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Nexperia UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Diodes Inc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for IQE plc, and factors influencing its performance in the industry
- Description and key data for Nexperia UK Ltd, and factors influencing its performance in the industry
- Description and key data for Diodes Inc, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Patents can protect growth prospects. Intellectual property rights, like patents, are often vital to businesses in the electronic component manufacturing industry, as develop...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The shift to fabless workers lifts average wages. Most employees don't tend to work on the manufacturing floor but are highly skilled and educated professionals, like enginee...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom in 2024?
The market size of the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom is £1.8bn in 2024.
How many businesses are there in the Semiconductor & Circuit Manufacturing in the UK industry in 2024?
There are 470 businesses in the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom, which has declined at a CAGR of 1.0 % between 2019 and 2024.
Has the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom has been declining at a CAGR of 3.6 % between 2019 and 2024.
What is the forecast growth of the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Semiconductor & Circuit Manufacturing in the UK market in United Kingdom?
The biggest companies operating in the Semiconductor & Circuit Manufacturing market in United Kingdom are IQE plc, Nexperia UK Ltd and Diodes Inc
What does the Semiconductor & Circuit Manufacturing in the UK in United Kingdom include?
Microprocessors and Diodes are part of the Semiconductor & Circuit Manufacturing in the UK industry.
Which companies have the highest market share in the Semiconductor & Circuit Manufacturing in the UK in United Kingdom?
The company holding the most market share in United Kingdom is IQE plc.
How competitive is the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom?
The level of competition is high and increasing in the Semiconductor & Circuit Manufacturing in the UK industry in United Kingdom.
