The UK Engineering Skills Gap: Chips, Data Centres, Drones and Cyber Security

Why engineering skills matter now

The Industrial Strategy, published in June 2025, is a ten-year plan to increase business investment in eight growth-driving sectors, including advanced manufacturing and digital and technologies. Each sector plan comes with a skills section, because investment in factories, chips and computing capacity cannot turn into output without people who can design, build, install and maintain the equipment.

The Department for Education says almost 600,000 additional workers will be needed by 2030 across defence, clean energy, digital and technologies and advanced manufacturing. In April 2026 it announced 19 new Technical Excellence Colleges in those sectors, backed by £175 million.

Chips and semiconductors

The National Semiconductor Strategy (2023) focused the UK on its strengths in chip design and intellectual property, compound semiconductors and research. Three years on, skills are the pressure point. The UK AI Hardware Plan, published by the Department for Science, Innovation and Technology in June 2026, estimates a shortfall of 10,400 workers by 2030 if the sector grows at 7% a year, with the gap "particularly acute in chip design roles".

The government's response includes expanding the semiconductor skills programme to £48 million, more undergraduate bursaries (rising from 300 in 2025–26 to 500 in 2027–28) and a new £12 million Centre for Doctoral Training in Chip Design. A sector study for the department found that firms reported shortages of technicians and equipment engineers, not only graduate designers.

What this means for learners

Chip engineering is not only for PhD researchers. Verification, prototyping on FPGAs, board-level integration and test engineering are practical skills that technicians and engineers can build on top of an electronics background.

Data centres

In September 2024 the government designated data centres as Critical National Infrastructure, the first new designation in almost a decade. AI Growth Zones followed, with sites expected to show access to at least 500MW of power by 2030 and applicants encouraged to commit to training programmes for local residents. In 2026 the government also changed legislation so that data centres can be directed into the regime for Nationally Significant Infrastructure Projects.

We could not find an official estimate of how many data centre workers the UK needs. What is clear from the policy is that each new site needs people who understand power, cooling, networks and resilience, and that the government expects local training to be part of the deal.

Advanced manufacturing and drones

Skills England's 2026 assessment for advanced manufacturing projects growth of 47,000 jobs (13%) in priority occupations between 2025 and 2035, plus around 101,000 replacements for people leaving, giving total demand of about 148,000. It says the demand pressures are already acute, and 84% of the extra roles need Level 4 or above. The Advanced Manufacturing Sector Plan commits over £100 million over three years to engineering skills in England and promises shorter, more flexible manufacturing apprenticeships by 2030.

Drones are a growing part of that picture. The Department for Transport's Future of Flight action plan aims for routine drone flights beyond the pilot's visual line of sight by 2027, and the sector plan names scaling those operations as a priority. Building drones at scale needs the same core skills as any electronics production line: PCB assembly, soldering to a standard, testing and quality control.

Cyber security

The government's 2026 study of cyber security skills in the UK labour market estimates a workforce of around 145,900 and a supply requirement of about 10,200 new people a year. It found that 57% of businesses had a basic technical cyber skills gap, up from 49% the year before. There were almost 67,000 cyber job postings in 2025.

How to close the gap

• Learn by building. Employers report shortages of technicians and engineers who can do the work, not only people who know the theory.
• Train at Level 3 to 5. Most new roles need Level 4 or above, and many people can get there from a Level 3 starting point.
• Use local funding. Councils and combined authorities can fund places that support local growth plans.
• Train cohorts. Employers can bring in new entrants and upskill existing staff at the same time.

Frequently asked questions

How big is the UK semiconductor skills shortage?

The UK AI Hardware Plan (June 2026) estimates a shortfall of 10,400 workers by 2030, assuming the sector grows by 7% a year. It says the gap is particularly acute in chip design roles.

Are data centres critical national infrastructure in the UK?

Yes. The government designated data centres as Critical National Infrastructure in September 2024, the first new designation in almost a decade.

How many advanced manufacturing workers does the UK need?

Skills England's 2026 assessment estimates total demand of about 148,000 workers in priority advanced manufacturing occupations between 2025 and 2035, including replacements for people leaving the workforce.

Is there still a cyber security skills gap?

Yes. The 2026 government study found 57% of UK businesses had a basic technical cyber security skills gap, up from 49% the year before, and estimated a need for about 10,200 new people a year.

Does Orvanta Open College offer engineering courses?

We are launching programmes in drone manufacturing, peripheral engineering, cyber engineering, chip engineering, data centre design and construction trades. We are also launching software development, design, architecture and testing programmes. Find out more and enquire on our courses page.