Britain said on Tuesday that UK chipmaker Fractile will invest 100 million pounds ($136.43 million) in its domestic operations over the next three years, as the company ramps up efforts to scale production of its artificial intelligence chips. The planned investment will include the establishment of a new hardware engineering facility aimed at supporting the expansion of Fractile’s AI chip manufacturing capabilities. The British government said the funding will also be used to grow the company’s UK-based engineering workforce and advance the development of next-generation computing systems designed to run advanced artificial intelligence models more efficiently than existing hardware.
Fractile, a London-based computer chipmaker, will open a new site in the western English city of Bristol as part of the expansion. The facility will assemble the company’s chips into complete AI systems and house a testing laboratory for software built to support future computing technologies. According to the government, Fractile’s decision to scale its operations within the UK reflects confidence in the country’s technology sector, which it says is now valued at more than 1 trillion pounds.
AI Minister Kanishka Narayan, who is expected to formally announce the investment at an event in London, said the move demonstrates how British companies can play a central role in strengthening the country’s position in advanced computing. “The investment from Fractile, a London-based computer chipmaker, will fund a larger UK-based engineering team and support work on next-generation systems designed to run advanced AI models faster than current hardware,” the British government said.
The expansion comes as Britain seeks to position itself as a leader in artificial intelligence and advanced semiconductor development, with policymakers increasingly highlighting the importance of domestic innovation and infrastructure in next-generation computing.
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