Budget 2026: UK Government announces £18m for new AI chip 'academy' in Edinburgh
The new academy will be based at the King’s Buildings campus
The UK chancellor has announced £18 million in funding for an AI chip design programme led by Edinburgh University, aimed at boosting the UK’s ability to develop semiconductor chips that underpin technologies such as AI.
The UK Advanced Chip Design Academy, announced as part of an investment package included in Wednesday’s Budget, will provide UK-based researchers access to the latest chip-design tools and opportunities to design, develop and test their own semiconductor chips.
AI chips are computer microchips used in the development of AI systems, which are specifically designed to handle AI tasks such as machine learning and human language processing.
It is hoped the academy will help connect British research more directly with semiconductor manufacturing and the production of AI hardware.
The academy will be based at the King’s Buildings in Edinburgh and is being led by Professor Themis Prodromakis, the university’s Regius Chair of Engineering.
It is part of a wider AI investment package to boost the UK’s homegrown AI capabilities and protect people and jobs most at risk from the advancement of the technology.
The Chancellor of the Exchequer John Healey said: “AI will transform daily life: every firm, community, hospital, school, and every aspect of our economy can benefit.
“I understand and share the concerns of working people, so I am setting out a distinctively British approach to AI - one that doesn’t leave workers behind and defends our national interest, while ensuring the benefits of AI-enabled growth are felt right across the country.”
Professor Themis Prodromakis described the establishment of the academy as a “transformative investment” in the UK’s technological capability.
He said: “Advanced semiconductors underpin the future of AI, quantum computing, and next-generation communications.
“By bringing together world-class academic expertise, cutting-edge tools, and industry-standard training pathways right here in Edinburgh, the Academy will empower researchers across the UK to translate innovative chip designs into physical silicon – nurturing the high-value sovereign talent needed to drive the UK’s tech economy forward.”
The announcement came as Mr Healey promised funding for the devolved administrations.
He said: “Devolved governments will receive equivalent funding for the measures in this Budget and today I’m also investing directly in high-growth industries in Scotland, Wales and Northern Ireland.
“In Wales, £2.5 million for a science park in North Wales, £11 million for the Aberavon Bridge and £30 million for Cardiff Parkway Station.
“In Scotland, £18 million for advanced chip design led by Edinburgh University, and £6 millions for Glasgow’s Scottish Event Campus.
“And in Northern Ireland, £7.5 million for AI and Cyber in Belfast.”