Look east for opportunity
But, as they refine their business strategies for the year ahead, Cambridge tech scale-ups can draw inspiration from local companies such as Accelerated Materials, Darktrace, Paragraf, Pragmatic Semiconductor and Wave Photonics, which have all embarked on expansion into Asia Pacific – a region eager for UK innovation.
Their moves into this fast-growing region in 2024 were supported by the government-funded UK-APAC Tech Growth Programme, which we run to help British scaleups to unlock and capitalise on commercial opportunities in 11 markets across Asia-Pacific.
Could 2025 be the year your business looks east to forge new relationships and boost growth, backed by government support? And, if so, which markets present the greatest opportunities, and what technologies are most in demand?
GreenTech: A growing priority
Most companies in the Asia Pacific region have green technology high on their agenda. South Korea, for instance, has substantial potential to develop offshore wind energy, but lacks the capacity to manufacture large-scale turbines and the operational expertise to deliver this form of power. Technologies for hydrogen generation, including electrolyser advancements, are also gaining traction in the country.
Japanese companies are also embracing sustainability applications to future-proof their businesses and are seeking long-term academic partnerships to develop next-generation technologies.
Cambridge’s reputation as a hub for cutting-edge research positions it perfectly for such collaborations.
Meanwhile, right across the region, carbon capture, storage and usage technologies (CCUS) are in high demand, particularly in the petrochemical, steel and cement industries as they strive to make their processes more eco-friendly.
Quantum technology: A global race
Both Korea and Japan are accelerating efforts to establish themselves as leaders in quantum technology. While they are committing huge investment to their own research, they view international collaborations as essential to meet their ambitions.
Cambridge-based companies can play a pivotal role in this ecosystem, with demand for applications in computational chemistry, drug discovery and design, cybersecurity, and financial optimisation.
Semiconductors: Powering AI growth
The global demand for semiconductors continues to rise, fuelled further by advancements in AI. Japan’s government and corporate sectors have made substantial investments in this area, turning Kyushu into the nation’s ‘Silicon Island’.
Fierce competition with Taiwan, South Korea and China is driving innovation in Japan and creating opportunities for UK firms to contribute to this rapidly evolving sector. Cambridge’s strength in semiconductor technologies positions it well in this competitive landscape.
Logistics: Optimising supply chains
The ‘China + 1 strategy’ – a diversification approach being employed by many multinational corporations to reduce their reliance on China for production and sourcing – is driving rapid growth in the manufacturing sectors of several countries in Southeast Asia, mostly notably Vietnam. However, Vietnam’s underdeveloped logistics infrastructure, particularly around ports, is a significant bottleneck, adding costs and inefficiencies. This has spurred interest in AI-based solutions and Cambridge’s AI expertise can help address these challenges, offering scalable solutions to optimise supply chains and support the country’s burgeoning industrial sector.
How we took our first steps into Asia Pacific - Wave Photonics
Cambridge-based Wave Photonics specialises in designing integrated photonics – a technology that supports scalable, high-volume semiconductor fabrication processes. CEO James Lee shares his insights from its recent venture into the Asia Pacific region.
“APAC is at the forefront of global semiconductor fabrication capabilities. As integrated photonics shift towards high-volume production, driven by the demands of AI model training in data centres, it’s likely that much of this manufacturing will occur in the region.
“As a result, we were keen to explore early opportunities to deploy our design and optimisation technology in APAC. We also wanted to accelerate the development of diverse material platforms for quantum applications.
“Through our participation in the UK-APAC Tech Growth Programme, we attended the Quantum Korea tradeshow last June in Seoul, gaining invaluable insights into South Korean companies pioneering quantum-integrated photonic products.
“The Programme's Korea team also arranged meetings with potential partners and customers alongside the event - crucial steps in establishing our presence in the country.
“In terms of results: An important lesson from our visit to Seoul was the significant gap in design capabilities for Korean companies working in integrated quantum photonics.
“This spurred us to develop a solution that builds on the SiNQ project – an initiative to advance quantum computing technologies using trapped ions as qubits.
“We’re transitioning our technology to an Asian foundry, enabling our customers to progress seamlessly from research foundry development to high-volume production.
“We’re also in advanced commercial discussions with an APAC-based company, with an exciting partnership announcement on the horizon.
We believe the opportunities for tech firms in APAC are immense, and the support provided by the UK-APAC Tech Growth Programme in getting us started was invaluable. The meetings its team facilitated and the events we participated in offered us insights and connections that remote engagement could not replicate.
“For companies considering a similar move, my advice would be: Go in person: Online research alone won’t give you the full picture. Start early: Everything takes longer than you expect.”
About the author
Jeremy Shaw is Head of the UK-APAC Tech Growth Programme at Intralink. He has worked in Asia for 21 years and is a fluent Japanese speaker.
