A growing number of nations are becoming increasingly concerned about technological sovereignty as a result of the increase in demand for processing power brought on by the widespread use of innovative technology like artificial intelligence. In this regard, Black Semiconductor is a semiconductor startup that has successfully raised €254.4 million (about $273 million at current exchange rates) through a combination of private and public finance. The company has developed a revolutionary chip-connecting method based on graphene. It is one of the biggest financial injections for a European semiconductor company thanks to this funding.
Black Semiconductor was started as a spin-off from the University of Aachen by brothers Daniel and Sebastian Schall, who are the company's CEO and CFO, respectively. According to Daniel Schall, the funding will go toward continuing research and development, starting a pilot manufacturing plant in Aachen, hiring more employees globally (the company has currently 30 employees), and early-stage business development initiatives. These initiatives involve collaborations with significant European chip producers, such as ASML in the Netherlands, to boost output, as well as interactions with cloud computing and other sizable tech firms that buy a lot of chips. If all goes as planned the business wants to start making its first high-volume, commercially viable items by 2031.
A sizeable amount of the funding money, €228.7 million, comes from the German federal government and the state of North Rhine-Westphalia. The funding is categorized as Series A. This financing is part of the €8.1 billion "Important Project of Common European Interest" program, which was launched in 2023 by the European Commission with the goal of promoting significant technical developments.
Germany's Minister for Economic Affairs and Climate Action, Robert Habeck, recognized Black Semiconductor's distinct position within the IPCEI Microelectronics program, which consists of 31 projects, and commended the startup's proposal for its potential, particularly in advancing AI applications.
With participation from Porsche Ventures, Project A Ventures, Scania Growth, Capnamic, Tech Vision Fonds, and NRW.BANK, among others, the remaining €25.7 million represents a more conventional equity round. Prior investors, including Onsight Ventures, Cambium Capital, and Vsquared Ventures, also took part, after the company received an initial seed investment of roughly $6.6 million in 2020.
Porsche Ventures emphasized the strategic importance of their investment by highlighting the possibility of a smooth integration of photonics technology into conventional chips, which might revolutionize a number of sectors and applications, including AI in the future.
Daniel Schall's objective to reinvent computing efficiency is exemplified by the concentration on chip connectivity, an area that has received less attention than the actual fabrication of chips. This is essential for lowering data center operating costs, which cloud computing providers are actively interacting with Black Semiconductor to comprehend and impact the advancement of this exciting technology.