UK and Japan agree £18bn frontier tech and chip pact

The UK and Japan have signed an £18 billion Frontier Technology Partnership, announced by the UK government, to develop quantum computing, sensing and communications and to increase AI chip production. The agreement links government co-operation, targeted R&D support and plans to mobilize private capital.

Under the pact, the two countries plan coordinated public funding, joint commercial projects and measures to encourage two-way investment. Officials outlined long-term business ties that include joint research and development, export activity and support for companies entering each other’s markets.

The quantum element expands a prior memorandum of cooperation. It targets commercially scalable quantum systems for computing, sensing, communications and networking. Planned work covers joint integration of quantum high-performance computing, shared testbeds, common evaluation frameworks and system integration to support industry applications.

An immediate commercial outcome cited by the government is an export contract for British firm ORCA Computing, described as one of the first large purchases of a quantum computer. The government said the deal will help move research toward market-ready products deployable in both countries.

On semiconductors, the agreement establishes a formal relationship between the UK Semiconductor Centre and Rapidus, Japan’s advanced chip consortium. Collaboration will focus on producing advanced chips for phones, vehicles and other devices and on strengthening resilience in AI semiconductor supply chains. The two governments also plan closer co-operation between their AI Security Institutes to address safety and security issues for AI hardware and software.

The partnership includes steps to deepen links between innovation networks, venture capital and startups. It commits to encouraging joint commercialisation of emerging technologies, including dual-use applications, and to exploring shared methods to assess and reduce risks that could impede commercialisation.

The government added the wider package will bring multibillion-pound investment into the UK, create tens of thousands of new jobs and generate more than £18 billion in economic gains. Prime Minister Keir Starmer welcomed the deal, stating the partnership will pair British and Japanese research and industry to deliver growth and security across the United Kingdom.

The Frontier Technology Partnership follows previous bilateral agreements, including this year’s Strategic Cyber Partnership, last year’s Economic Security and Industrial Strategy Partnerships, the 2023 Semiconductor Partnership and the 2022 Digital Partnership. Officials described the approach as linking R&D, industrial capacity and regulatory co-operation to maintain manufacturing and technological capability and to support commercial uptake of advanced technologies.