Funding injection set to expand NMIS’s semiconductor manufacturing capabilities to create UK centre for advanced packaging

National Advanced Semiconductor Packaging and Integration Centre expected to support 300 jobs and generate £800 million in additional revenue for businesses.

Plans for a national hub for the development of advanced semiconductor packaging are now underway, following the announcement of a £160 million investment from the UK Government in Glasgow City Region Innovation Zone (GCRIZ) projects. 

Led by the National Manufacturing Institute Scotland (NMIS), the new centre will form part of the University of Strathclyde’s Advanced Net Zero Innovation Centre (ANZIC) in Renfrewshire. It will support UK and international customers with lab-to-scale packaging of semiconductor components for critical applications.

The National Advanced Semiconductor Packaging and Integration Centre (NASPIC) builds on a previous £8 million grant from Innovate UK for advanced packaging in power electronics. It responds to the accelerating need for semiconductor innovation to support next-generation technologies, from AI to photonics, as packaging capabilities struggle to keep pace with demand.

As the world embraces transformative technologies such as AI, quantum computing, photonics, and integrated sensing, the demand for semiconductors, and the advanced packaging they require, is growing rapidly.

A potential £29 million investment from GCRIZ will fund new facilities to deliver complex, high-value solutions that are in short supply. Today, many wafer manufacturers are forced to offshore semiconductor packaging, resulting in long lead times and limited supply chain resilience.

In a first for Europe, the new facility will enable faster development of semiconductor devices, reducing packaging lead times from months to days, while keeping production within the UK and helping to mitigate geopolitical risk. State-of-the-art equipment will allow partners to prepare and dice wafers, mount and connect devices, conduct testing, and seal devices in the final package.

The investment will also see the current cleanroom double in size, enabling further research and scale-up in critical areas such as AI, quantum computing, photonics, and advanced Complementary Metal-Oxide-Semiconductors (CMOS), adding to NMIS’s existing capability in power electronics. The centre is expected to create 300 new jobs and unlock an estimated £800 million in additional revenue for UK and international businesses.

Professor Matt Boyle, Director of Electrification at NMIS, said: “We are building a world-class capability here in Glasgow, positioning the region at the forefront of advanced semiconductor development. Our ambition is to serve the global market for semiconductor packaging. As part of this, we also intend to develop skills programmes that will fuel the sector’s expansion both locally and nationally.

“This latest funding boost underlines NMIS’s commitment to becoming a world-leading centre for advanced manufacturing in these critical technologies. NASPIC will support companies looking to bring manufacturing in-house and reduce their reliance on overseas supply chains. With access to the broader expertise at the University of Strathclyde, the centre will offer a wafer-to-systems integration capability.

“There is no other facility in the UK that offers the level of support and access to technology we are planning. This new national resource will be key to enhancing the UK’s position in a growing global market, nurturing businesses and enabling them to scale.

“This is a very exciting moment. Scotland has long been at the forefront of semiconductor innovation. Now, with fresh momentum and investment, we have the opportunity to put Scotland back on the global map for advanced packaging, underpinned by targeted skills development.”

Professor Sir Jim McDonald, Principal and Vice-Chancellor of the University of Strathclyde and Chair of the NMIS Board, said: “The development of the National Advanced Semiconductor Packaging and Integration Centre reflects Strathclyde’s scientific and technological strengths and our longstanding commitment to industrial innovation and research that delivers real-world impact. This is a strategically important capability for the UK, enhancing our competitiveness, strengthening supply chains, and opening up new opportunities in high-growth sectors such as AI, quantum, and photonics.

“Through NMIS and our close collaboration with government and industry, we are helping to build the skills, infrastructure, and expertise required to secure the UK’s future as a global leader in advanced manufacturing.”