Deeptech
Q3 202401.07.2024

Semiconductors (Q3 2024)

Picture of Éanna Kelly

Éanna Kelly

at Sifted

No tech races feel as urgent as the one to build AI chips — those purpose-built devices to train and run the biggest tech advance of the decade: generative AI. A Crunchbase report from June finds that VC-backed chip startups have raised nearly $5.3bn in just 175 deals so far this year.

Silicon Valley’s Nvidia designs the semiconductors of choice for many AI servers; meanwhile, Europe’s AI chip startups are still trying to make a name for themselves.

To be clear, Europe does chipmaking very well — just look at the continent’s most valuable tech company, Eindhoven-based ASML, which holds a global monopoly on extreme ultraviolet lithography machines, and Germany’s Carl Zeiss SMT, a specialist in making mirrors and lenses used in the world’s most advanced chipmaking equipment. And we’ve seen a few large European chip raises in 2024 — the most recent one being Netherlands-based Axelera AI’s $68m Series B round in June.

But the challenge now is to develop AI chips at scale, while competing against companies with formidable backing. Undoubtedly, Europe trails here: Nvidia, for example, has an estimated 70-95% share of the AI chip market; China is on track to spend more than $100bn to build new chip plants.

20 startups to watch

  • Axelera AI logo

    Sifted score

    8.79
    -

    Axelera AI

    Streamlined AI for edge computing.

    • Strong investor(s)
    • Serial founder(s)
    • Hiring
    • Year founded

      2021

    • HQ

      Eindhoven, Netherlands

    • Latest round

      Grant
      20.9m / Jun 2023

    • Total funding

      58.9m

  • Living Optics logo

    Sifted score

    6.82
    -

    Living Optics

    Hyperspectral cameras for detailed imaging.

    • Strong investor(s)
    • Serial founder(s)
    • Year founded

      2019

    • HQ

      Oxford, United Kingdom

    • Latest round

      Series A
      24m / Sep 2022

    • Total funding

      31.0m

  • Salience Labs logo

    Sifted score

    6.77
    -

    Salience Labs

    Photonic chips for high-speed data processing.

    • Strong investor(s)
    • Serial founder(s)
    • Year founded

      2020

    • HQ

      Oxford, United Kingdom

    • Latest round

      Grant
      2.4m / Feb 2023

    • Total funding

      16.4m

  • Innatera Nanosystems logo

    Sifted score

    6.44
    -

    Innatera Nanosystems

    Brain-inspired processors for efficient pattern recognition.

    • Strong investor(s)
    • Year founded

      2018

    • HQ

      Rijswijk, Netherlands

    • Latest round

      Series A
      15m / Mar 2024

    • Total funding

      22.5m

  • Oriole Networks logo

    Sifted score

    5.87
    -

    Oriole Networks

    • Serial founder(s)
    • Year founded

      2023

    • HQ

      London, United Kingdom

    • Latest round

      Seed
      12m / Mar 2024

    • Total funding

      12m

Related Briefings

Related articles

Europe’s VCs are increasingly taking on jobs at their startups

July 17, 2026

Europe’s VCs are increasingly taking on jobs at their startups

By Anne Sraders

Pro

From chatbots to ‘digital teammates’: The shift towards multiplayer AI

July 17, 2026

From chatbots to ‘digital teammates’: The shift towards multiplayer AI

From chatbots to ‘digital teammates’: The shift towards multiplayer AI
Sponsored by Dust
Mollie doubles down on Europe with €350m expansion plan: ‘Superapp is a convoluted word’
Interview

July 17, 2026

Mollie doubles down on Europe with €350m expansion plan: ‘Superapp is a convoluted word’

Koen Koppen Mollie
By Damisola Sulaiman

Pro

The sectors with the most momentum heading into H2
Venture capitalSifted data

July 17, 2026

The sectors with the most momentum heading into H2

Sifted dug into the data to discover the hottest sectors across Europe in the first half of 2026

By Jonathan Sinclair

Pro

Exclusive: EQT’s €5bn Scaleup Fund in talks to lead Mistral round

July 16, 2026

Exclusive: EQT’s €5bn Scaleup Fund in talks to lead Mistral round

By Freya Pratty and Daphné Leprince-Ringuet

Pro

From pilot to production: How scaling companies are making AI work

July 16, 2026

From pilot to production: How scaling companies are making AI work

From pilot to production: How scaling companies are making AI work
Sponsored by Box
Munich robotics startup Microagi raises $55m, Germany’s largest ever seed round

July 16, 2026

Munich robotics startup Microagi raises $55m, Germany’s largest ever seed round

By Éanna Kelly
‘We want to make bookkeeping less painful’: How Visma and its AI portfolio are reshaping accounting

July 16, 2026

‘We want to make bookkeeping less painful’: How Visma and its AI portfolio are reshaping accounting

‘We want to make bookkeeping less painful’: How Visma and its AI portfolio are reshaping accounting
Sponsored by Visma
European rounds are getting bigger, but fewer companies are closing them
Sifted data

July 16, 2026

European rounds are getting bigger, but fewer companies are closing them

A 20 Euro bill folded up into a shirt
By Federico Scolari

Pro

Europe’s most valuable board members, according to founders

July 16, 2026

Europe’s most valuable board members, according to founders

Europe’s most valuable board members, according to founders
By Freya PrattyMimi Billing and Maya Dharampal-Hornby

Pro

Europe’s leading tech hubs by deal activity in H1 2026
Sifted viewSifted data

July 16, 2026

Europe’s leading tech hubs by deal activity in H1 2026

London
By Ruggero Di Spigna

Pro

EQT-backed Syntetica raises $30m backed by Lululemon

July 16, 2026

EQT-backed Syntetica raises $30m backed by Lululemon

Syntetica is currently working with brands including Victoria’s Secret and Etam

By Freya Pratty
From Tesla to building humanoids: Uma cofounder on why Europe is ‘the best market in the world’
RoboticsInterview

July 16, 2026

From Tesla to building humanoids: Uma cofounder on why Europe is ‘the best market in the world’

Uma cofounder Rémi Cadène
By Daphné Leprince-Ringuet

Pro

Robotics startup Monumental raises $32m backed by Khosla Ventures

July 15, 2026

Robotics startup Monumental raises $32m backed by Khosla Ventures

By Ellie Apostolidi
Yann LeCun launched a new VC fund — then quit. What happened?

July 15, 2026

Yann LeCun launched a new VC fund — then quit. What happened?

By Maya Dharampal-Hornby
Exclusive: Aramco in talks to back Humanoid at unicorn valuation
RoboticsExclusive

July 15, 2026

Exclusive: Aramco in talks to back Humanoid at unicorn valuation

By Freya Pratty and Tom Nugent

Pro

Europe’s ‘real’ founder factories: Klarna and Improbable
Startup lifeAnalysis

July 15, 2026

Europe’s ‘real’ founder factories: Klarna and Improbable

Europe’s ‘real’ founder factories: Klarna and Improbable
By Éanna Kelly
It’s time to start paying all your staff like your sales team

July 15, 2026

It’s time to start paying all your staff like your sales team

It’s time to start paying all your staff like your sales team
By Julio Martinez
The incubator launching Scotland’s next generation of tech: ‘We need to pull the bigger players into the Scottish market’
Venture capitalSponsored by

July 15, 2026

The incubator launching Scotland’s next generation of tech: ‘We need to pull the bigger players into the Scottish market’

The incubator launching Scotland’s next generation of tech: ‘We need to pull the bigger players into the Scottish market’
Sponsored by Techscaler
Can Neko's unflattering avatars actually change behaviour?
HealthtechOpinion

July 15, 2026

Can Neko's unflattering avatars actually change behaviour?

Neko Health's body scanning avatar
By Mimi Billing
Neko raises $700m Series C: ‘We now have 100k members and are profitable at clinic level’
HealthtechInterview

July 15, 2026

Neko raises $700m Series C: ‘We now have 100k members and are profitable at clinic level’

The body scanning startup Neko Health's CEO Hjalmar Nilsonne.
By Mimi Billing

Pro

European biotech mapped: 90 startups reshaping medicine
BiotechMarket map

July 15, 2026

European biotech mapped: 90 startups reshaping medicine

From drug discovery to gene editing, these startups are transforming the future of medicine

By Oshin Narang

Pro

The ex-Palantir and Dropbox duo helping the likes of ElevenLabs, Notion and Wiz ship AI-generated code faster

July 15, 2026

The ex-Palantir and Dropbox duo helping the likes of ElevenLabs, Notion and Wiz ship AI-generated code faster

By Tom Nugent
Why late-stage secondary offerings are transforming private market access
HealthtechPaid for and produced by

July 14, 2026

Why late-stage secondary offerings are transforming private market access

Why late-stage secondary offerings are transforming private market access
Paid for and produced by Republic