News: Microelectronics
12 February 2026
UK–Bulgaria collaboration developing Green Silicon Carbide wafer factory
Under the UK–Bulgaria Strategic Partnership, the UK Science and Technology Network (STN) and the Department for Business and Trade (DBT) have connected UK expertise with Bulgaria’s ambitions under the EU Chips Act 2023 and its fast-growing auto electronics sector. The Science and Technology Network has served as a bridge between government, academia and industry in the UK and Bulgaria – strengthening mutual understanding and unlocking opportunities for collaboration.
The collaboration is targeted at creating opportunities for innovation, investment and skills development, strengthening bilateral ties and supporting Bulgaria’s efforts to position itself as a competitive player in Europe’s semiconductor and automotive technology landscape.
Bulgaria is a gateway to Eastern markets and a key manufacturing hub in Southeast Europe. The country now produces about 80% of the sensors used in European cars and hosts R&D centers and smart factories (e.g. Melexis in Sofia, Sensata and Schneider Electric in Plovdiv).
The electronics sector is projected to grow from about €2.3bn in 2023 to €2.7bn by 2028, representing a compound annual growth rate of 2.9%. Bulgaria’s automotive industry comprises around 380 companies employing over 80,000 people and contributes more than 10% to Bulgaria’s GDP, making it a key driver of economic growth.
Development of UK–Bulgaria collaboration on semiconductors
A roundtable in Sofia in 2024 hosted by British Embassy Sofia brought together UK and Bulgarian government, academia, and industry leaders to discuss opportunities. STN followed this up by organizing a study visit to Scotland in March 2025, where Bulgarian stakeholders saw the UK’s factories and training models first-hand.
Finally, a UK trade mission to Bulgaria in November 2025 showcased the country’s growing semiconductor ecosystem, including both Bulgarian innovators and global players investing in the Bulgarian market, attracting UK innovators to explore partnerships.
Resulting activities
As a result of the series of activities, STN has facilitated:
- development of a €350m investment Green Silicon Carbide wafer factory, delivering £10.5m UK export wins and advancing next-generation materials;
- a research memorandum of understanding (MoU) between Glasgow and Sofia Universities, enabling joint projects and talent exchange;
- an industry MoU between TechWorks UK and Bulgaria’s BASEL, strengthening sector ties.
The next phase will focus on launching the Green Silicon Carbide factory in Bulgaria, deepening R&D partnerships, and expanding skills initiatives.
By linking UK compound semiconductor expertise with Bulgaria’s manufacturing capacity, STN reckons that it has helped to create the foundation for developing longer-term collaboration potential in both R&D and opportunities for business investment. Highlights of partnering are listed as:
- Supply chain security: Diversifying production within Europe strengthens supply chain resilience and mitigates geopolitical risks.
- Innovation acceleration: Co-located R&D hubs and factories create an ecosystem for rapid prototyping and commercialization of next-generation materials like silicon carbide.
- Talent pipeline: Joint training programs and academic exchanges will help to close the skills gap in a sector facing global shortages.
- Help facilitate supportive policy frameworks that can advance international partnerships.
www.gov.uk/world/organisations/uk-science-and-technology-network
