SMG secures £6m to strengthen UK sovereign semiconductor capability

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Silicon Microgravity Limited (SMG) has raised £6 million in funding as it seeks to expand UK manufacturing and semiconductor production capacity for its MEMS (microelectromechanical systems) devices used in defence and space-related applications.

The round was led by West Hill Capital and included investment from the UK Innovation & Science Seed Fund (UKI2S), managed by Future Planet Capital. UKI2S participated through its Defence & Security and Space portfolios, with the deal marking the fund’s first participation in SMG via its Space Portfolio, according to the announcement.

SMG said its proprietary MEMS technology is designed for extreme operating environments, with stated applications including launch vehicles, lunar and planetary exploration, satellite communications, navigation, sensing and autonomous operations. The company said its MEMS accelerometers are already supporting advanced space programmes and may also be used in satellite-enabled critical mineral exploration.

The company said the new funding will be used to support a scale-up of UK manufacturing capability, increase engineering and semiconductor production capacity, and accelerate commercial partnerships across Europe and the United States.

The announcement positions the investment as part of a wider push to build more resilient, sovereign semiconductor supply chains and dual-use capabilities, as governments and industry seek to reduce dependence on overseas manufacturing and components for critical technologies.

Francis Neill, CEO of SMG commented: “The future of defence, autonomous systems and space exploration depends on navigation and sensing technologies that are smaller, more accurate and capable of operating where GPS cannot.

“This investment allows us to accelerate commercial deployment of technologies that are already attracting significant interest from global customers and partners, while continuing to build sovereign sensing capability here in the UK.”

Alexander Leigh, Investment Director, Defence & Security, UKI2S (managed by Future Planet Capital), added: “SMG represents exactly the kind of strategically important dual-use technology business the UK needs to scale.

“Semiconductors, sensing and advanced manufacturing are increasingly critical to both national security and the future competitiveness of the UK space sector. What makes SMG particularly compelling is the combination of deep technical differentiation and growing commercial validation from globally recognised customers.

“This level of traction demonstrates the relevance of UK-built advanced manufacturing capability on the international stage. Supporting sovereign capability in these areas is essential if the UK is to remain competitive in critical technologies over the coming decades.”

David Hollidge, Partner of West Hill Capital, added, “West Hill is delighted to have had the opportunity to make a further investment in Silicon Microgravity with its world-class and truly groundbreaking technology that is revolutionising both navigational and subsurface imaging systems for defence, aerospace and subterranean exploration”.

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