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Over 1.6 billion US dollars! Overview of chip industry investment and financing

In the first two months, global chip investment and financing exceeded 60 cases.

In January 2024, 20 startups in chip packaging, artificial intelligence, and quantum fields raised nearly $840 million in investment. In February, 49 startups in the fields of power electronics and data center interconnection raised $800 million.

The scale of financing in January was remarkable, with three companies raising over $100 million each. Quantum computing topped the list, with the merged entity of Cambridge Quantum Computing and Honeywell Quantum Division completing the third-largest quantum computing company financing in history.

Another noteworthy company is an advanced packaging technology company that began production in its first factory last year. Silicon Box, founded by executives from Marvell and STATS ChipPAC, promises a new type of interconnect technology for chip integration.

The artificial intelligence hardware sector also performed well, with four companies raising nearly $200 million in funds. As always, methods to improve AI computing efficiency are diverse, ranging from domain-specific processors to storage capacitors for edge applications.

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In addition, among the 20 startups that raised a total of $840 million in January 2024, there were technological applications such as metrology test chips, high-speed data converters, and n-type conductive inks.

In February, a startup focused on developing low-power AI inference chips, Recogni, received the largest round of financing. Recogni has already launched a low-power vision inference chip. Several other significant rounds of financing were concentrated in the automotive sector, including autonomous taxis, self-driving delivery services, and sensors that enable these functionalities.Another active field is power electronics, which has attracted many companies to invest in research on special methods to improve performance in areas such as efficiency and density. In addition, multi-terabit interconnects and silicon photonics technology are two approaches that startups are trying to accelerate data transmission.

In addition to venture capital, many governments also invest in supporting electronic and quantum technologies, including the U.S. Department of Energy, Canada's FedDev Ontario, the UK Research and Innovation Agency, and the European Innovation Council.

This report covers 20 startups that received investment in January and 49 startups in February.

AI Hardware

Rebellions secured a $124 million Series B funding round led by telecommunications company KT Corp, with other investors including Shinhan Venture Investment, Pavilion Capital, Koreyla Capital, DG Daiwa Ventures, Korea Development Bank, Noh & Partners, KB Securities, KB Investment, SV Investment, Mirae Asset Investment, Mirae Asset Capital, IMM Investment, KT Investment, Seoul Techno Holdings, Oasis PE, Gyeongnam Venture Investment, and SDB Investment. Rebellions develops domain-specific AI processors and optimized software. The company states that it has re-architected its AI processors using specialized silicon DL cores to enable more complex deep learning functions. Rebellions has launched products aimed at the financial industry to improve transaction speeds and reduce latency in high-frequency trading. The company is also developing a chip focused on accelerating AI inference in data centers. The funds raised will be used to develop a third AI chip aimed at generative artificial intelligence's large language models and to increase the productivity of its data center inference chips. Rebellions was founded in 2020 and is headquartered in Seongnam, South Korea.

Krutrim received $50 million in financing led by Matrix Partners India and others. Krutrim plans to design and manufacture data center AI chips as part of a complete AI computing stack to support its large language models, thereby supporting generative AI applications in all Indian languages. The company was founded in 2023 and is headquartered in Bangalore, India.

Mobilint raised 20 billion won (approximately $15.3 million) in Series B funding, with new investors including Kyobo Securities, Union Investment Partners, Daesung Private Equity, and Game Changer Investment, and existing investors including Intervest, KDB Industrial Bank, L&S Venture Capital, and KDB Capital. Mobilint produces NPU chips for high-performance edge AI inference. The current generation offers up to 80 TOPS performance and comes with a customized NPU compiler and architecture that maximize data reuse and reduce memory access. It also offers AI acceleration cards and standalone AI boxes. The company was founded in 2019 and is headquartered in Seoul, South Korea.

Semron secured €7.3 million (approximately $7.9 million) in seed funding led by Join Capital, with SquareOne Venture Capital, OTB Ventures, Onsight Ventures, and individual investors participating. Semron focuses on developing analog memory computing technology for edge AI chips. The chip is based on Semron's innovative transistor replacement technology CapRAM, which uses variable-capacitance storage capacitors to store weights for matrix multiplication. Semron states that this approach improves energy and thermal efficiency by fundamentally reducing computational noise, and its 3D stacked chips can provide very high computational density, making it suitable for applications such as running AI models locally on VR headsets, earphones, and smartphones. The device uses conventional semiconductor materials. The company was founded in 2020 and is headquartered in Dresden, Germany.Chip

Recogni has raised $102 million in a Series C funding round led by Celesta Capital and GreatPoint Ventures, with existing investors Mayfield, DNS Capital, BMW i Ventures, and SW Mobility Fund, as well as new investors Pledge Ventures and Tasaru Mobility Investments joining in. Debt support was provided by HSBC Innovation Banking. Recogni produces AI inference accelerator processor hardware and software. Its products include chips and cards, as well as pre-trained models, SDKs, and other software for model development, conversion, and deployment. Its products target various application scenarios, such as cloud-based generative AI inference, automotive, and AI vision processing for autonomous platforms. The funds will be used to support the development of next-generation systems. Recogni was founded in 2017 and is headquartered in San Jose, California, USA.

Point2 Technology secured a $22.6 million extension in its Series B funding round from Bosch Venture and Molex. Point2 is dedicated to the research and development of ultra-low power, low-latency mixed-signal SoCs for multi-terabit interconnects using active cables (AECs) in hyperscale and AI/machine learning data centers. Its target areas also include automotive applications. The startup offers SoCs for 400G and 800G AECs that integrate multiple unidirectional SerDes channels, intelligent clock data recovery (CDR)/retiming functions. It employs a BER-aware architecture that correlates the entire chip's BER with the power consumption of each circuit block, enabling real-time monitoring and calibration during chip operation. Additionally, it provides a 25G NRZ SoC for network infrastructure. Point2 will collaborate with Molex to promote its scalable interconnect platform that uses radio frequency data transmission through plastic medium waveguides for multi-terabit active cables. The company was founded in 2016 and is headquartered in San Jose, California, USA.

Electronic Design Automation (EDA)

Quilter raised $10 million in a Series A funding round led by Benchmark, with Coatue participating, and existing investors Root Ventures and Harrison Metal Capital also taking part. Quilter is developing generative PCB design software that combines reinforcement learning, neural networks, and distributed computing, aiming to create a tool similar to a software compiler for circuit board design. It can handle schematics and manage all aspects of circuit board design, including layout, routing, stacking, and flow. The tool also performs physical simulations to identify issues like crosstalk and electromagnetic interference and verifies performance. The product is currently in a public beta phase. The funds raised will be used to expand hiring and product development to enable the compilation of very complex circuit boards with strict design constraints. Quilter was founded in 2021 and is headquartered in Los Angeles, California, USA.

Manufacturing, Equipment, and Materials

Femtum raised over CAD 5 million (approximately USD 3.7 million) in seed financing led by ELAS Technology Investment and i4 Capital, with Quantacet, Boreal Ventures, Eureka, Hamamatsu Ventures, and VIGO Ventures following. Femtum produces mid-infrared laser systems, including mid-infrared pulsed fiber lasers, fiber amplifiers, and tunable light sources. In semiconductor processing, mid-infrared lasers can precisely cut materials such as silicon and germanium through multi-photon absorption. They are also used for selectively creating transparent conductive films on various substrates and for making waveguide grooves on surfaces. The funds raised will be used to commercialize mid-infrared fiber lasers to meet the needs of semiconductor manufacturers. Femtum was founded in 2017 and is a spin-off from the Optics, Photonics, and Laser Center, located in Quebec City, Quebec, Canada.Niron Magnetics secured a $25 million strategic investment led by Samsung Ventures, with participation from Allison Transmission's Allison Ventures, automotive supplier Magna, the Shakopee Mdewakanton Sioux Community, and the University of Minnesota, among other existing investors. Niron Magnetics manufactures high-performance magnets based on iron nitride and rare-earth-free materials. High-performance magnets are utilized in hard disk drives as well as in electric vehicle drive systems, household appliances, audio speakers, and industrial and commercial sectors such as wind turbines, elevators, and heating, ventilation, and air conditioning (HVAC). Niron claims that its magnets are cheaper than rare-earth magnets and have higher intrinsic magnetic strength. The funds will be used to expand production facilities and increase manufacturing capacity for initial sales. Niron was established in 2015 as a spin-off from the University of Minnesota, with its headquarters in Minneapolis, Minnesota, USA.

N-ink received a €1 million (approximately $1.1 million) convertible note from Voima Ventures. N-ink produces n-type conductive polymer inks for printing electronic devices, such as organic electrochemical transistors, which can be applied to flexible IoT devices, sensors, and bioelectronic products. Additionally, it has applications in organic supercapacitors, organic solar cells, and OLED displays. Its ink formulation is compatible with existing solution deposition processes. The company was founded in 2020 and is located in Norrköping, Sweden.

Greenerwave secured €15 million (approximately $16.8 million) in equity investment from Bpifrance, Agence de l'innovation de défense, Safran Corporate Ventures, Intelsat, BNP Paribas Développement, and Plastic Omnium. Greenerwave designs electronic reconfigurable materials combined with off-the-shelf electronic components and physical algorithms to shape electromagnetic waves. The company will use the raised funds to support the industrialization of its first product, an electronically controllable antenna designed for Ku-band satellite communications. Greenerwave also plans to enter the fields of cellular communications, RFID, and radar imaging. The company was founded in 2016 and is headquartered in Paris, France.

Chiral secured $3.8 million in seed funding led by Founderful and HCVC, with additional support from ETH Zurich and Venture Kick. Chiral is dedicated to the development of automated, high-speed nano-assembly robots that integrate nanomaterials into electronic devices. Currently, the company primarily focuses on carbon nanotubes for manufacturing transistors, sensors, nanoscale systems exhibiting quantum effects, and targeted drug delivery systems. The company offers foundry services and equipment. Chiral was established in 2023 as a spin-off from ETH Zurich and Empa, with its headquarters in Zurich, Switzerland.

**Packaging and Testing**

Silicon Box obtained a $200 million Series B funding round from BRV Capital, Event Horizon Capital, Grandfull Convergence Fund, Hillhouse Capital, Lam Capital, Maverick Capital, Prasedium Capital, Tata Electronics, TDK Ventures, UMC Capital, and the company's founders. Silicon Box is a panel-level advanced packaging service provider with features for small chip integration. The company's approach uses technology below 5 microns to achieve extremely short interconnects between chips, thereby increasing density, reducing resistive losses and parasitic capacitance to improve energy efficiency, enhancing signal integrity, manufacturing more efficient thermal management structures (such as microchannels and heat sinks), and offering design flexibility, while reducing the manufacturing costs of high-performance devices. The financing will be used to expand production at its recently opened 750,000 square foot facility. The company was founded in 2021 and is headquartered in Singapore.

Chipmetrics raised €2.4 million (approximately $2.6 million) in a seed funding round led by High-Tech Gründerfonds and Occident, with participation from Innovestor, Redstone, and BALD Engineering. Chipmetrics produces a 3D ultra-high aspect ratio measurement test chip and test structures for the consistency measurement of material deposition processes, including atomic layer deposition and chemical vapor deposition. The chip can be used to compare different 3D film processes and is suitable for process development and production monitoring. The raised funds will be used to accelerate product development, expand production capacity, and support global expansion. Chipmetrics was founded in 2019 as a spin-off from VTT Technical Research Centre of Finland and is headquartered in Jyväskylä, Finland.

**Memory and Storage**TopoLogic has secured approximately 470 million yen (~$4.7 million) in funding from SBI Investment, University of Tokyo IPC, Daiwa Corporate Investment, Japan Science and Technology Agency, IT-Farm Corporation, Japan Material Technologies Corporation Group, and Plug and Play Japan. TopoLogic develops devices based on topological materials. Its first product, TL-RAM, is a type of MRAM memory that, according to the startup, offers lower power consumption and higher write speeds compared to traditional MRAM. Additionally, the company is researching a thermal flux sensor for various applications, such as detecting abnormalities in batteries and power semiconductors and predicting failures. Established in 2021, TopoLogic is a spin-off from the University of Tokyo, headquartered in Tokyo, Japan.

SCALINX raised €34 million (~$37.2 million) in its Series B funding round, with investors including Bpifrance, Go Capital, Thales, and existing investors such as NCI WaterStart Capital, Normandie Participations, BNP Paribas Development, and Unexo. SCALINX is a fabless mixed-signal SoC developer with ultra-high-speed analog/digital converters and digital/analog converters applicable to scenarios like 5G, 6G networks, and autonomous vehicles. Its low-power data conversion technology supports on-chip data processing, data conversion, and digital processing of broadband signals for microwave, millimeter-wave, and multi-band telecommunication equipment. The funds raised will be used to expand the business scale, primarily targeting the wireless communication market, launching a family of test and measurement products, and hiring. The company was founded in 2015 and is headquartered in Paris, France.

Wise Integration raised €15 million (~$16.2 million) in a Series B funding round led by imec.xpand, with Supernova Invest, BNP Paribas Developpement, Région Sud Investissement, Creazur, CASRA Capital, and Angels for Greentech also participating. Wise Integration develops gallium nitride (GaN) integrated circuits and digital control technology for power supplies. The company states that its 650V GaN devices, combined with a 32-bit MCU-based AC-DC digital controller, can simplify system design and enhance power density and efficiency. Supporting power demands from 30W to 7kW, target markets include consumer electronics, electric mobility, industry, data centers, and electric vehicles. The funds raised will be used for international expansion, R&D, and the introduction of new products. The company was established in 2020 from the French Alternative Energies and Atomic Energy Commission (CEA) and is headquartered in Heille, France.

Lotus Microsystems secured 60 million Danish kroner (~$8.8 million) in financing from Noon Ventures and the European Innovation Council. Lotus Microsystems develops micro power conversion modules using silicon chip interconnect technology. This method achieves high power density through 2.5D and 3D packaging technologies, with integrated active and/or passive devices within the module, including different technologies such as CMOS, MEMS, or GaN. The solution also offers high thermal performance, evenly distributing the heat of power devices on the substrate along vertical and horizontal paths. Target applications include consumer electronics, high-performance computing, and industrial sectors. The funds will be used to support development projects, expand R&D, and accelerate market entry strategies. The company was founded in 2020 and is headquartered in Copenhagen, Denmark.

Ookuma Diamond Device obtained 330 million yen (~$2.2 million) in debt financing from Hokuriku Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation. Ookuma Diamond Device focuses on developing diamond semiconductor amplifiers and power electronic devices. The company has specifically developed devices for the decommissioning project of the Fukushima Daiichi Nuclear Power Station, as diamond-based devices can withstand high temperatures and radiation environments. The startup is also exploring application areas in 6G wireless communication base stations, satellite communication equipment, and radar. The company was spun off from Hokkaido University in 2022 and is headquartered in Sapporo, Japan.Photonics and Optics

DustPhotonics has raised $24 million in a Series B follow-on funding round, with investors including Sienna Venture Capital, Greenfield Partners, Atreides Management, and Exor Ventures. DustPhotonics develops silicon photonic solutions for data communication in hyperscale data centers and AI applications. The startup claims that its method of integrating existing lasers onto silicon reduces loss and increases optical margin, reducing the number of lasers required. Additionally, it includes high-speed modulators and detectors as well as passive components. DustPhotonics currently offers photonic integrated circuits supporting 400Gb/s and 800Gb/s links, as well as products designed specifically for immersion cooling. The funds raised will be used to scale up production and accelerate the development of next-generation products capable of supporting 1.6Tb/s applications. Founded in 2017 and headquartered in Modi'in, Israel.

Quantum Computing

Quantinuum has raised $300 million in equity financing led by JPMorgan Chase, with participation from Mitsui & Co., Amgen, and Honeywell. Quantinuum manufactures quantum processors and complete hardware based on ion-trap computing and QCCD architecture. The company states that its approach offers flexibility in algorithm design and enables operations with very high fidelity and intermediate circuit measurements on selected qubits. Its second-generation computer features a trapezoidal ion trap with 32 fully connected qubits. The company also provides middleware and software applications for fields such as cryptography, computational chemistry, finance, and artificial intelligence. The funds raised will be used to continue the development of a universal fault-tolerant quantum computer and to expand its software products. Quantinuum, a merger of Cambridge Quantum Computing and Honeywell Quantum Solutions, was founded in 2021 and is headquartered in Broomfield, Colorado, USA.

QphoX has secured €8 million (approximately $8.7 million) in funding, led by QDNL Participations, with the EIC Fund, existing investors Quantonation, Speedinvest, High-Tech Gründerfonds, and Delft Enterprises also participating. QphoX is developing quantum modulators and core hardware to enable communication between quantum computers via room-temperature optical interconnects. Its quantum transducer is based on coupling microwaves and photons through a mechanical intermediate resonator, and the company claims this method can achieve low-loss and high-fidelity quantum state transfer. The process is based on the piezoelectric effect and optomechanical effects, is fully coherent, and can work bidirectionally. The funds will be used to bring its first product to market. Founded in 2021 as a spin-off from Delft University of Technology, QphoX is headquartered in Delft, the Netherlands.

QSIMPLUS has received 3 billion won (approximately $2.3 million) in Series A funding from Mirae Asset Venture Investment, InterVest, and Stick Ventures. The startup is developing network operation and simulation software and hardware equipment for building quantum communication systems based on fiber optics, free space, and satellites. QSIMPLUS was founded in 2021 and is headquartered in Seoul, South Korea.

Diraq has raised 15 million yuan in an A-2 funding round led by Quantonation, with John Higgins Family Investments and the University of New South Wales also participating. Diraq is developing a quantum processor based on silicon quantum dot electron spin. This approach allows the processor to be manufactured using standard CMOS manufacturing technology. The startup states that its technology has the potential to scale to billions of qubits per chip and achieve sufficiently accurate qubit control for scalable error correction. Diraq plans to develop a complete set of hardware and software that can be provided via cloud services. The fundraising will be used for R&D, hiring, and entering the US market. Founded in 2022 and headquartered in Sydney, Australia.

Xanadu has received a repayable investment of CAD 3.8 million (approximately $2.8 million) from FedDev Ontario. Xanadu builds photonic quantum computers accessible via a cloud platform. Its goal is to create highly fault-tolerant, error-correcting quantum computers that can scale to a million qubits. Xanadu states that using photonic technology allows the use of modern chip manufacturing facilities, optical components developed by the telecommunications industry, and the interconnection of photonic chips using optical fibers. The startup also offers software and quantum simulators, including an open-source software framework for programming quantum computers. Founded in 2016, the company is headquartered in Toronto, Canada.Sensors

QDI Systems has raised €5 million (approximately $5.4 million) in Series A funding led by NOM (Northern Netherlands Investment and Development Agency), with other existing investors such as Carduso Capital, RUG Ventures, and Maki.vc, as well as an innovation loan from the Dutch Rijksdienst voor Ondernemend Nederland. QDI Systems is committed to developing imaging devices for medical applications based on quantum dots. According to the startup, X-ray imaging systems using quantum dots can enhance image quality at lower radiation doses. Its first target application is breast cancer screening. The company does not manufacture imaging devices itself but provides quantum dot materials and instructions on how to manufacture high-performance X-ray sensors. QDI Systems is also developing technology using short-wave infrared (SWIR) for industrial and consumer applications. Founded in 2019, the company is a spin-off from the University of Groningen in the Netherlands, with its headquarters in Groningen, the Netherlands.

Uhnder has raised $50 million in Series D funding led by ACME Capital, with participation from Magna, Qualcomm Ventures, El Camino Capital, Monta Vista Capital, Sagitta Ventures, and HT Capital. Uhnder produces software-defined digital radar chips and sensor modules for the automotive, industrial, and defense industries. The startup claims that its 4D digital imaging radar chip can detect and track height, speed, and distance at high resolutions of over 50 frames per second, while mitigating radar interference and spoofing attacks. Founded in 2015, Uhnder is headquartered in Austin, Texas, USA.

sensiBel has secured €7 million (approximately $7.6 million) in funding led by audio company Sennheiser, with participation from existing investors TRUMPF Venture, Skagerak Capital, Investinor, SINTEF Venture, MP Pensjon, and Halden Kommunale Pensjonskasse. sensiBel has developed optical MEMS readout technology and integrated it into MEMS microphones, which are said to provide excellent recording quality. The technology is based on the principles of interference and diffraction, combining miniaturized energy-saving lasers with compact integrated interferometers to precisely measure the movement of silicon membranes. The startup's microphones can be applied in scenarios such as corporate video conferencing systems, 3D spatial audio capture, active noise-canceling headphones, and smartphones. The optical MEMS technology can also be applied to other MEMS products, such as accelerometers. Founded in 2016 and based on research from SINTEF, sensiBel is headquartered in Oslo, Norway.

Amazec Photonics has received €1.5 million (approximately $1.6 million) in seed funding led by PhotonDelta. Amazec Photonics develops application-specific photonic integrated circuits (ASPICs) and fiber optic sensors based on fiber Bragg grating (FBG) technology for the creation of ultra-high sensitivity temperature sensing devices, capable of measuring temperature changes as small as 0.0001°C. The company is committed to applying this technology to minimally invasive cardiovascular monitoring tools for earlier and easier diagnosis of cardiovascular diseases. The funds will be used to manufacture devices for clinical trials, which are planned to begin this year. Founded in 2021, Amazec Photonics is headquartered in Oudkarspel, the Netherlands.

 

Displays and AR/VR

VoxelSensors has secured an additional €3 million (approximately $3.3 million) in its seed round, led by new investor SFPIM Relaunch, with participation from existing investors Qbic Fund and finance&invest.brussels, bringing the total funding in this round to €9.5 million. VoxelSensors is a startup developing 3D sensing architectures and sensors for XR devices. The company's Switching Pixels Active Event Sensor (SPAES) 3D sensing technology, based on laser beam scanning, uses single-photon sensitive sensors to accurately locate the top of the laser beam and generates ultra-low latency depth data through scanning triangulation. The startup claims that SPAES technology provides precise segmentation, spatial mapping, anchoring, and natural interaction for XR devices, with power consumption of less than 10 milliwatts, latency of less than 5 milliseconds, and the ability to resist outdoor light at distances over 5 meters while avoiding interference. The company was founded in 2020 and is headquartered in Brussels, Belgium.

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