Europe is making strides to strengthen its semiconductor industry with the recent funding secured by a German next-generation chip firm. Black Semiconductor, a startup focused on developing advanced chip technology, announced that it has raised €254.4 million (US$274 million), with major contributions coming from the German government.
The German Ministry of Economic Affairs and the state of North Rhine-Westphalia invested €228.7 million (US$248 million) in public funds, demonstrating a significant commitment to supporting the semiconductor sector. Additionally, Porsche Ventures and venture capital firm Project A provided the remaining €25.7 million (US$28 million) in equity financing.
The funding will be utilized by Black Semiconductor to establish a pilot production facility in Aachen, Germany, with plans for mass production by 2031. The company also aims to expand its workforce from 30 to 120 employees by 2026, highlighting its growth trajectory in the semiconductor industry.
This investment in a German semiconductor startup underscores Europe’s ambition to compete with global leaders like the U.S. in chip manufacturing. While Europe boasts companies like ASML in the Netherlands, manufacturing has traditionally been dominated by Asian giants such as TSMC and Samsung.
Black Semiconductor’s CEO, Daniel Schall, emphasized the importance of Europe’s role in semiconductor design, leveraging the region’s strengths in the supply chain. The company is exploring next-generation technologies that utilize graphene for interconnecting chips within devices and data centers. By using light-based communication instead of electricity, Black Semiconductor aims to enhance the efficiency and speed of chips.
Graphene, known for its lightweight properties and strong conductivity, offers a promising avenue for advancing chip technology. Schall’s comments reflect the company’s innovative approach and the rationale behind the German government’s investment in Black Semiconductor.
As Europe intensifies its efforts to bolster its semiconductor industry, collaborations between startups, government entities, and investors will play a crucial role in driving innovation and competitiveness in the global market. The strategic funding secured by Black Semiconductor signifies a significant step towards establishing Europe as a key player in the semiconductor landscape.