<h1>Semiconductor policy bolsters defence manufacturing by driving private-sector leadership and collaborative industry-Navy development.</h1> Semiconductor policy is framed as a strategic enabler for domestic defence manufacturing, promoting private-sector leadership and grant-based incentives to support civilian and defence technologies. Complementary Ministry of Defence innovation funding and schemes aim to stimulate start-ups, SMEs and supplier development. The Navy has shifted from a purchaser to a collaborative partner, using task forces and outreach to assess technologies, timelines and gaps and to involve industry in capability co-development.