News: Suppliers
5 May 2025
Compound semiconductors essential to unlocking the UK’s AI action plan, says CSA Catapult
Compound semiconductors will be critical to helping the UK achieve its AI action plan, driving economic growth and significant benefits for society, according to a report by Compound Semiconductor Applications (CSA) Catapult.
With the global market for AI set to grow to over $1.5 trillion by 2030, the report outlines the significant upgrade in hardware capability needed to cope with the increased computational and energy demands of AI technology. It also reckons that the UK is well positioned to lead the AI transformation through its recently published AI Opportunities Action Plan. But to realise this vision, it states that the UK must capitalize on its expertise in compound semiconductors.
Established in 2018 by government agency Innovate UK, CSA Catapult is a not-for-profit center of excellence with labs and offices across the UK that specializes in the measurement, characterization, integration and validation of compound semiconductor technology spanning power electronics, advanced packaging, radio frequency and microwave, and photonics applications.
Offering greater energy efficiency, faster data processing and better reliability, compound semiconductors are superior to traditional silicon in areas such as power electronics, photonics and radio frequency (RF) communications – vital for infrastructure such as data centers. Also, as AI models grow and get more sophisticated, their power consumption also significantly increases. The data centers that power AI are already using 1% of global electricity. This is expected to grow to 8% by 2030. The need for a shift to faster and more efficient hardware is therefore clear.
Compound semiconductor-based photonic devices can also dramatically increase the speed at which computers process and transmit data, significantly reducing latency in AI applications.
Meanwhile, RF technologies leveraging compound semiconductors can improve the speed and efficiency of data transfer in AI applications, edge computing, and the Internet of Things (IoT), which is expected to connect over 32 billion devices worldwide by 2030.
“Silicon-based technologies are reaching their limits in terms of energy efficiency and performance. Compound semiconductors enable faster data processing, greater energy efficiency, and enhanced performance, making them essential for next-generation AI applications,” says CSA Catapult’s chief technology officer Nick Singh. “By leveraging the unique capabilities of compound semiconductors, the UK can build a future where AI not only drives economic growth but also delivers transformative benefits to society.”
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