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UK AI Chips Drive Reindustrialisation

Financial Times Companies •
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Andy Burnham says chips and drones will be at the heart of Britain’s push to "reindustrialise".

Kanishka Narayan, the new AI minister, stresses that the government will reject "tech boosterism" and use regulation to keep AI under British control, learning from past sales of nascent companies.

The government has earmarked £1.1bn for AI hardware, including a £150mn advance to buy chips from UK firms, and aims to build domestic chip factories and AI‑powered drones for defence.

Narayan warns of material risks to jobs, security and public trust, insisting the state must invest, secure visas for engineers and speed up infrastructure to keep the bulk of value and jobs in the UK, while noting Soft Bank’s ownership of Arm as a cautionary example.