Investor Partnerships – ACT and Semiconductors

UK registered SMEs can apply for grant funding alongside private investment from selected investor partners.

Competition opens: Tuesday 1 September 2026 Competition closes: Wednesday 14 October 2026 11:00am

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Competition sections

• Summary
• Eligibility
• Scope
• Dates
• How to apply
• Supporting information

Description

Advanced Connectivity Technologies (ACT) and Semiconductors (including AI Hardware)

Up to £15 million has been allocated to fund innovation projects in this competition. This is subject to us receiving a sufficient number of high quality applications. Funding will be in the form of a grant.

This funding opportunity is a joint call, funded by the Department for Digital, Culture, Media and Sport (DCMS) and the Department for Business, Innovation, Science and Trade (BIST) to develop Advanced Connectivity Technologies (ACT) and Semiconductor solutions. These are both frontier technologies in the Digital & Technologies Sector Plan of the UK’s Modern Industrial Strategy.

For Semiconductor solutions, this competition also contributes to the new UK AI Hardware Plan, supporting the development of Semiconductor technologies that underpin AI. This joint call recognises each technology individually, as well as their convergence and shared criticality to the growth of the modern digital economy. Projects and solutions that consider either or both technology domains in innovative ways are within scope.

Advanced Connectivity Technologies (ACT) are emerging and advanced technologies that enable the transmission of data via communications networks and network infrastructure in an increasingly digitised economy and society, connecting both people and things. These include technologies that make up advanced wireless systems, such as 5G and the transition to 6G, non-terrestrial networks, and advanced optical networks.

Semiconductors are highly specialised components that provide the essential functionality for electronic devices to process, store and transmit data. Most of today’s semiconductors are integrated circuits, composed of active discrete devices (transistors, diodes), passive devices (capacitors, resistors, inductors, MEMS) and the interconnections between them, integrated on a wafer of semiconductor material.

AI Hardware are the semiconductor technologies that underpin AI required to enable capability across data centre, edge and embodied AI systems. This competition is targeted at growth oriented ACT and Semiconductor start-ups from seed to Series A, with the funding element delivered through our proven Investor Partnerships model. It supports each technology individually, alongside areas of overlap where specialised semiconductors support ACT.

Investor Partnerships Innovate UK, as part of UK Research and Innovation (UKRI), has selected investor partners with aligned investment interests and capacity to lead investments.

These investor partners have demonstrated that they have the credibility, capability, capacity and appetite to invest in innovative, technology-led businesses in areas that align with our strategic priority areas.

The Investor Partnerships programme brings together:

• Innovate UK’s expertise in identifying innovation and using grant funding to change the risk profile of businesses
• investor partners aligned funding and expertise in identifying opportunities and teams that can best use extra investment finance

The aim of this competition is to provide support for research and development and access to the capital investment you need to develop and commercialise your innovations. This may be in combination with our Business Support (Innovate UK Business Growth, Innovate UK Business Connect, Catapults and the UK Semiconductor Centre).

This competition is for SMEs that can demonstrate the potential to grow and scale and must also have a project that is aligned to the scope provided in the scope section.

This approach aims to provide you with support for research and development and access to the capital investment you need to develop and commercialise your innovations.

This programme is using Innovate UK Business Connect’s B2Match platform to support innovators and investors by facilitating introductions and enabling the matchmaking required for this call.

For further information on B2Match, please watch the Applicant Briefing or get in touch with Innovate UK Business Connect. When registering for the Applicant Briefing, you will be given the option to join the B2Match platform, where you can set up a profile to showcase your organisation to interested investors.

In the first instance, please contact Richard.Foggie@iukbc.org.uk for ACT related enquiries and Jessica.Dobson@iukbc.org.uk for Semiconductors related enquiries.

The investor partner must have submitted an expression of interest directly to Innovate UK and confirmed with you that you are in a position to apply for grant funding as you will be asked to identify them in the application. Without an EOI submitted by your named Investor Partner, your application will be viewed as ineligible.

Examples of sufficient investment traction will depend on the approach taken by the investor partner and could include:

• an indicative offer from an investor partner which could include an angel investor from an investor partner angel group or network
• going through due diligence with an investor partner
• receiving a term sheet from an interested investor partner

To be successful, your project must be independently assessed by Innovate UK as fundable and receive aligned investment directly, led or catalysed by the investor partner identified in your application.

In applying to this competition, you are entering into a competitive process. This competition has a funding limit, so we may not be able to fund all the proposed projects. It may be the case that your project scores highly but we are still unable to fund it.

We consider a range of factors when determining whether to provide funding to applicants. This includes an assessment of prior conduct, such as any outstanding payments owed to Innovate UK or UKRI. Such factors may influence the funding decision, potentially resulting in a refusal of funding or an award subject to additional scrutiny.

We also reserve the right to adjust funding allocations for any of our competitions. This may be in response to changes in policy funding considerations or broader government funding decisions.

This competition closes at 11am UK time on the deadline stated in this Innovate UK competition brief. We cannot guarantee other government or third party sites will always show the correct competition information.

Funding type

Investor Partnerships

Project size

Your project’s total costs will depend on your research category and must be between £250,000 and £1 million for industrial research, and £500,000 and £2 million for experimental development.

Accessibility and Inclusion

We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments for people who have a disability or a long-term condition and face barriers applying to us.

You can contact us at any time to ask for guidance.

We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

Who can apply

Your project The eligibility criteria will depend on your research category.

For industrial research projects:

• your total project costs must be between £250,000 and £1 million
• the project duration must be between 6 and 18 months

For experimental development projects:

• your total project costs must be between £500,000 and £2 million
• the project duration must be between 6 and 18 months

Projects must always start on the first of the month, even if this is a non-working day. You must not start your project until your Grant Offer Letter has been approved by Innovate UK. Any delays within Project Setup may mean we need to delay your project start date.

You must only include eligible project costs in your application. See our overview of eligible project costs.

If your project does not meet our criteria your application will be made ineligible and it will not be sent for assessment.

Your organisation This competition is open to single applicants only. To apply your organisation must:

• be a UK registered micro, small or medium sized business (SME)
• carry out its project work in the UK
• intend to exploit the results from or in the UK
• be invited to apply by your investor partner
• have discussed and agreed your proposal with your investor partner before submitting your application

More information on the different types of organisation can be found in our Funding rules.

Subcontractors Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you cannot use subcontractors from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total eligible project costs

Number of applications An SME can only submit one application into this round of the competition.

Sanctions This competition will not fund you, or provide any financial benefit to any individual or entities directly or indirectly involved with you, which would expose Innovate UK or any direct or indirect beneficiary of funding from Innovate UK to UK Sanctions. For example, through any procurement, commercial, business development or supply chain activity with any entity as lead, partner or subcontractor related to these countries, administrations and terrorist groups.

Use of animals in research and innovation Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Applicants must ensure that all of the proposed work within projects, both in the UK and internationally, will comply with the UKRI guidance on the use of animals in research and innovation.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

Previous applications

You can use a previously submitted application to apply for this competition.

If you have previously submitted an application that reached our assessment stage, you can re-apply once more with the same proposal.

If there are minor differences to the proposal, but it is judged by us to be ‘not materially different’, the same rule applies.

We will not award you funding if you have:

• failed to exploit a previously funded project
• an overdue independent accountant’s report
• failed to comply with grant terms and conditions

Innovate UK may withhold a grant payment at any time if you have any outstanding sums due to us in relation to other projects.

Subsidy control (and State aid where applicable)

This competition provides funding in line with the Subsidy Control Act 2022. Further information about the Subsidy requirements can be found within the Subsidy Control Act 2022.

Innovate UK is unable to award organisations that are considered to be in financial difficulty. We will conduct financial viability and eligibility tests to confirm this is not the case following the application stage.

EU State aid rules now only apply in limited circumstances. See the Windsor Framework to check if these rules apply to your organisation.

In the ‘Project details’ section of your application you will be asked questions to indicate if State Aid or Subsidy applies to your organisation.

Further Information If you are unsure about your obligations under the Subsidy Control Act 2022 or the State aid rules, you should take independent legal advice. We are unable to advise on individual eligibility or legal obligations.

You must not do anything which could cause a breach of Subsidy Control legislation applicable in the United Kingdom.

This aims to regulate any advantage granted by a public sector body which threatens to, or distorts competition in the United Kingdom or any other country or countries.

Funding

You will only receive Innovate UK grant funding if you also secure aligned investment at or above the minimum required for the relevant research level.

Your investor partner must also submit a “Declared Minimum Aligned Investment”, which you must confirm with your investor partner.

Before any funding decision, we will ask the investor partner to confirm the “Declared Minimum Aligned Investment”. If the “Declared Minimum Aligned Investment” is higher than the minimum required for the relevant research level, it will be treated as greater leverage and will strengthen our assessment of additionality unless there is a strong justification not to.

However, at the same time, the confirmed "Declared Minimum Aligned Investment" becomes the new "Minimum Aligned Investment". Your project cannot start until this amount has been secured.

Innovate UK will decide which projects are eligible and in scope to receive grant funding.

The decision will be based on three factors:

1. Innovation: Assessed by independent assessors based on your application.
2. Additionality: Based on the impact of the grant in accelerating your innovation and leveraging the aligned investment. Assessed by the Investor Partnerships Team based on information provided by your named Investor Partner.
3. Traction: Based on the likelihood of the investment completing within a reasonable timeframe. Assessed by the Investor Partnerships Team based on information provided by your named Investor Partner.

To be successful in this competition, you must score strong across all three factors.

We will ask your confirmed Investor Partner to provide an update on the progress of your investment prior to making our funding decision. Our assessment of the additionality and traction will be based on this update. It is therefore important that you liaise with your Investor Partner and that their response represents your understanding of the investment position at that time.

If you are successful, you will receive grant funding to cover a proportion of the costs of your project. The project will only be allowed to commence once the agreed aligned investment has been confirmed.

Your business must have sufficient capital resources, including through investment from the investor partner and the grant funding, to enable you to meet all your project’s eligible costs.

All recipients must act commercially, and your funding request must not exceed the limits specified.

Industrial research projects For industrial research projects, Innovate UK will fund:

• up to 70% of eligible project costs for micro or small organisations
• up to 60% for medium sized organisations

The absolute minimum aligned investment led by the Investor Partner must always be at least equal to the grant funding.

Experimental development projects For experimental development projects Innovate UK will fund:

• up to 45% of eligible project costs for micro or small organisations
• up to 35% for medium sized organisations

The absolute minimum aligned investment led by the Investor Partner must be at least twice as much as the grant funding.

Innovate UK may revoke our decision to provide funding without notice if government commitment for this initiative is withdrawn.

Your proposal

The aim of this competition is to provide you with support for research and development and access to the capital investment you need to develop and commercialise your innovations.

Your proposal must have a clear route to market, a clear link to innovation and evidence that you can create a team to deliver your proposal.

You must be:

• registered in the UK as an SME by the time the award is contracted
• able to complete the aligned investment led by the investor partner needed to qualify for the award, through the issue of new shares or convertible debt

You must also demonstrate that if your project is funded, it will:

• have significant market impact
• be scalable
• be attractive to equity investors

Sectors and Technologies The scope for this competition reflects two of the frontier technologies in the UK’s Modern Industrial Strategy, Digital & Technologies Sector Plan - Advanced Connectivity Technologies (ACT) and Semiconductors. For Semiconductor solutions, this competition also contributes to the new UK AI Hardware Plan, supporting the development of Semiconductor technologies that underpin AI.

Proposals must support the research and development of ACT, Semiconductor technologies or proposals that must combine both.

Advanced Connectivity Technologies ACT includes the systems, components and innovations that underpin next-generation digital infrastructure. These technologies enable high-performance, secure, resilient and energy-efficient communications across networks, devices, software and services.

Semiconductors and AI Hardware Semiconductors are highly specialised components that provide the essential functionality for electronic devices to process, store and transmit data, while photonic technologies use light to enable high speed, energy efficient data movement and sensing. Together, they are typically realised as integrated circuits, photonic integrated circuits and related technologies, forming the foundation of modern digital systems. AI Hardware are the semiconductor technologies that underpin AI, required to enable capability across data centre, edge and embodied AI systems.

Integration of ACT and Semis Convergent solutions that integrate connectivity systems with specialised hardware. This category reflects the increasing interdependence of these technology domains.

Projects must demonstrate strong innovation, a clear route to market, and the potential to attract private investment. Through this competition, Innovate UK aims to support a balanced portfolio of projects across ACT, Semiconductors, and their convergence, reflecting their combined importance to the UK’s future digital economy.

Innovation and ideas can come from anyone and anywhere. We want to see investments unlocked for the diverse and extraordinary talent in the UK.

We encourage innovation involving communities that are typically under-represented, including:

• from regions that have historically accessed lower levels of investment (outside London, Oxford and Cambridge)
• ethnic minority groups
• women and other marginalised genders
• disabled people
• people with non-traditional education backgrounds

Portfolio approach We want to fund a variety of projects across the three themes. Within these themes, we want to fund a variety of projects across different technologies, markets, technological maturities, themes, locations, investment readiness, traction, and research categories. In developing a balanced portfolio, where funding is limited, we may take into account the extent to which projects contribute to the strategic priorities set out under each theme, alongside other portfolio considerations. We call this a portfolio approach.

Specific themes

Your project must focus on one of the following themes:

1. Theme 1 – Advanced Connectivity Technologies (ACT)
2. Theme 2 – Semiconductors (including AI Hardware)
3. Theme 3 – Convergence of ACT and Semiconductor technologies for use in connectivity networks

Details of Themes Theme 1 – Advanced Connectivity Technologies (ACT) This theme supports the development and commercialisation of secure, resilient and sustainable ACT solutions.

DCMS have developed two Grand Challenges for ACT, solutions that reflect these grand challenges will be prioritised for funding. The Grand Challenges are:

1. Secure and resilient networks – developing trustworthy connectivity technologies that protect networks from cyber threats and disruption, while improving reliability, coverage and continuity of service.
2. Sustainable networks – developing technologies that reduce networks energy use and environmental impact, improve spectrum efficiency and enable smarter use of network resources.

Projects in this theme can include, but are not limited, to technology development in the following areas:

• integration of Terrestrial and Non‑Terrestrial Networks (NTN)
• components or architectures that reduce energy use in connectivity systems
• improved use of spectrum
• assured Integrated Sensing and Communications (ISAC) systems and integration
• advanced Radio Frequency (RF) architectures and components
• network enabled sensing, positioning, and timing (PNT)
• RF interference, spoofing, and jamming resilience
• metamaterials and adaptive antenna systems
• advanced Multiple Input Multiple Output (MIMO) and physical layer innovation
• AI‑native and autonomous network architectures
• AI‑enabled RF design automation

If projects that address this theme primarily includes semiconductor innovations, applicants should apply under theme 3 below.

Theme 2 – Semiconductors (including AI Hardware) This theme supports the development and commercialisation of semiconductor technologies, materials, equipment, components and processes. Projects in this theme can include, but are not limited to:

• novel compute hardware and AI accelerators
• advanced semiconductor materials and device innovation
• integrated circuit (IC) design and architecture
• fabrication processes, equipment and manufacturing technologies
• power electronics and energy efficient devices
• sensors, micro-electromechanical systems (MEMS) and embedded systems
• photonics and optoelectronics

His Majesty’s Government (HMG) have developed the UK’s AI Hardware Plan which seeks to secure Britian’s future capability and strategic advantage in the chips and semiconductor technologies that underpin AI. Projects that align with the goals and scope of the UK’s AI Hardware Plan will be prioritised for funding.

AI hardware should be understood as the chips and semiconductor technologies that underpin AI, required to enable capability across data centre, edge and embodied AI systems. This includes all the electronic and photonic components of AI systems and the related capability across chip design, manufacturing and system integration, spanning:

• compute - AI chips and accelerators for training, inference and edge use, including architectures and chip design for example, spanning CPUs, GPUs, TPUs, AI ASICs. Key technology trends in this area include chiplets, heterogeneous integration, 3D packaging, novel computer architectures such as quantum computing and neuromorphic computing, and photonic approaches to improve bandwidth, latency and energy efficiency
• photonic interconnects and data movement – chip to chip, board and system level connectivity, including integrated photonics and co‑packaged optics, as well as memory and data storage technologies which are increasingly critical to scaling AI systems
• sensing - sensors and front end devices that generate and pre-process data for AI systems, including vision, radar, lidar, RF based sensing and photonic sensing where they deliver advantages in speed, precision or energy efficiency, and which are particularly important for edge and embodied AI applications such as robotics and autonomous systems
• power and energy systems - power electronics that make use of advanced materials such as silicon carbide and gallium nitride for efficiency and thermal management, and which are fundamental to scalable, cost effective and sustainable AI compute

For projects where the primary application of the semiconductor innovation is for use in connectivity networks, then applicants should apply under theme 3 below.