The UK government plans to provide taxpayer funds to support the country's semiconductor companies, Bloomberg reports.

The aid package would include seed money for startups, help for existing firms to scale up and new incentives for private venture capital, Bloomberg reported, citing officials.

Last month, the government said it was exploring national initiatives to expand the domestic chip industry, including the potential creation of a new institution as part of its infrastructure plans.

The strategy would aim to unlock the full potential of microchip companies and support jobs, and would aim to ensure a reliable supply of semiconductors.