Ten new semiconductor start-ups are to join a Government-backed programme to grow more such firms as part of plans to make the UK a key global hub for the technology.

Semiconductors are vital components that power smartphones, computers and many other devices, including those needed to build AI tools, and are seen as a cornerstone of the UK and global tech economy.

They are seen as a particularly important and sensitive technology commodity as around 90% of the world’s supply of the most advanced chips are currently made in Taiwan, which is a self-ruling democracy and backed by the US, but China claims it as its own territory.

The ongoing tension in the region, and possible uncertainty over the future supply of semiconductors, has led many nations, including the UK, to look for alternative sources of the chips that will continue to fuel the tech revolution.

The 10 start-ups will join ChipStart, a Government-backed incubator programme designed to help firms grow, boosting the economy in the process.

It is the third round of firms to join the scheme, with companies from the first two waves already on track to raise more than £40 million in private investment, the Government said.

The new wave has been backed by £1.1 million of Government funding.

Science minister Lord Vallance said: “The UK’s semiconductor industry is vibrant with innovation, and this third cohort shows just how much potential we have with many exciting start-ups.

“This sector holds incredible promise, and with the right partnerships it will lead us into a future of greater economic growth and technological advancement – a key pillar of our plan for change.”

Sean Redmond, from Silicon Catalyst UK, which runs ChipStart, said: “We have been delighted with the high quality of new semiconductor start-up applications we received for our third cohort of ChipStart from across the UK semiconductor clusters.

“Our now proven incubation process, that provides no-cost design tools and chip manufacturing, will help these competitively selected companies attract the right private investment at the right time, launching them on to the global semiconductor stage.

“With the help of our experienced semiconductor executive advisers, which includes co-founders of Arm, we can help these young companies make great decisions and build the next generation of UK semiconductor unicorns.

“The next 10 years of semiconductors will be a race to a £2 trillion industry.

“These new UK scale-ups will be in pole position to win that race.”