German Chip Startup Secures $274 Million in Funding Amid Europe’s Semiconductor Drive
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Loading... - Marie Werner
- 27 Jun 2024
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Black Semiconductor, a pioneering startup focused on next-generation chip technology, announced on Wednesday that it has secured 254.4 million euros (approximately $274 million) in funding, primarily from the German government. This development signals Europe's intensified efforts to advance its semiconductor sector.
The funding includes 228.7 million euros ($248 million) from the German Ministry of Economic Affairs and the state of North Rhine-Westphalia. The remaining 25.7 million euros ($28 million) were raised through equity investments led by Porsche Ventures and venture capital firm Project A.
The funds are earmarked for the construction of a pilot production facility in Aachen, Germany, with aspirations for mass production by 2031. Additionally, the startup aims to expand its workforce from 30 to 120 employees by 2026.
This significant investment highlights Europe's determination to compete with the U.S., which has allocated substantial funds to bolster its own chip manufacturing capabilities. While Europe hosts notable semiconductor companies like ASML in the Netherlands, it has not been a major player in chip manufacturing, a field dominated by Asian firms such as TSMC in Taiwan and Samsung in South Korea.
In an interview with CNBC’s "Squawk Box Europe," Black Semiconductor CEO Daniel Schall emphasized the importance of Europe establishing a foothold in the semiconductor industry. Schall remarked, "Germany and the entire European Union have recognized the importance of having influence in this sector. Sovereignty doesn’t mean replicating everything domestically, but rather contributing something unique."
Schall also highlighted Europe’s strengths in semiconductor design within the supply chain. Black Semiconductor is innovating with next-generation technologies, aiming to enhance chip communication within devices and data centers. By employing graphene to link multiple chips and using light instead of electricity for data transmission, the company aims to significantly improve chip efficiency and speed.
