February 18, 2026 /SemiMedia/ — UK-based chip startup Fractile said it will invest £100 million ($136 million) over the next three years to expand its domestic operations, including building a new hardware engineering facility to support growing AI system production.

The London-headquartered company said the funding will be used to hire more engineers in the UK and speed up development of its next-generation computing platforms, designed to run advanced AI models faster than today’s hardware.

A new site in Bristol will assemble Fractile’s chips into full AI systems and host a testing lab for software built for future computing architectures, marking a shift toward system-level AI hardware rather than standalone chip design.

The UK government said Fractile’s expansion reflects confidence in the country’s semiconductor and advanced computing sector, noting the wider tech industry is now valued at more than £1 trillion.

AI minister Kanishka Narayan is expected to formally announce the investment at an industry event in London, saying the project shows how homegrown companies can help strengthen Britain’s position in high-performance computing.