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

    View company profile
  • 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

    View company profile
  • 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

    View company profile
  • 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

    View company profile
  • 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

    View company profile

Related Briefings

Related articles

Revolut granted French banking licence
FintechNews

August 10, 2026

Revolut granted French banking licence

The fintech giant is investing over €1bn in Western Europe

By Damisola Sulaiman
UK air defence startup Cambridge Aerospace hits $3.4bn valuation in new fundraise
Defence techNews

August 10, 2026

UK air defence startup Cambridge Aerospace hits $3.4bn valuation in new fundraise

By Anne Sraders
DeepMind shakeup tests UK’s AI ambitions
Artificial intelligenceAnalysis

August 10, 2026

DeepMind shakeup tests UK’s AI ambitions

DeepMind shakeup tests UK’s AI ambitions
By Maya Dharampal-Hornby and Martin Coulter

Pro

DeepMind’s future has become all the more critical for the UK
Artificial intelligenceSifted View

August 10, 2026

DeepMind’s future has become all the more critical for the UK

Headshot of John Thornhill, Sifted's cofounder and editorial director.
By John Thornhill

Pro

‘I’m not here to be acquired’: Meet Nabla’s new CEO Brian Manning
Artificial intelligenceInterview

August 10, 2026

‘I’m not here to be acquired’: Meet Nabla’s new CEO Brian Manning

Brian Manning
By Daphné Leprince-Ringuet

Pro

The top junior VCs to watch in Europe, according to partners
Venture capitalList

August 7, 2026

The top junior VCs to watch in Europe, according to partners

Manal Belaouane of HV Capital
By Anne Sraders

Pro

Meet the 30+ venture scouts A16z has hunting for deals across Europe
Venture capitalList

August 7, 2026

Meet the 30+ venture scouts A16z has hunting for deals across Europe

By Maya Dharampal-Hornby

Pro

'We are more constrained by capacity than ideas': Why Lendable is chasing the superapp dream
FintechInterview

August 7, 2026

'We are more constrained by capacity than ideas': Why Lendable is chasing the superapp dream

Lenable cofounder and CEO Martin Kissinger
By Damisola Sulaiman

Pro

QMUL spinouts looking to raise
University spinoutsSpinouts fundraising

August 7, 2026

QMUL spinouts looking to raise

Sifted breaks down grant-stage to Series A spinouts from the university that are courting investors

By Oshin Narang

Pro

Inside Pleo's culture crisis: Executive exodus, unhappy staff and sale speculation
FintechInvestigations

August 7, 2026

Inside Pleo's culture crisis: Executive exodus, unhappy staff and sale speculation

Pleo cofounders Jeppe Rindom and Niccolo Perra.
By Damisola Sulaiman

Pro

UK expands talent visa to more than 100 companies
GovernmentNews

August 6, 2026

UK expands talent visa to more than 100 companies

Notably absent from the list are the country’s latest cohort of AI labs

By Freya Pratty
Europe’s 50 most active equity investors in H1 2026
Venture capitalMost active investors

August 6, 2026

Europe’s 50 most active equity investors in H1 2026

Europe’s 50 most active equity investors in H1 2026
By Federico Scolari and Oshin Narang

Pro

7 spots to meet founders and VCs in Paris
Startup lifeList

August 6, 2026

7 spots to meet founders and VCs in Paris

The bars, cafes, campuses and communities where the who’s who of French tech gathers regularly

By Daphné Leprince-Ringuet
Yann LeCun joins new VC firm
Venture capitalNews

August 5, 2026

Yann LeCun joins new VC firm

This comes less than a month after the ‘AI godfather’ launched and quit Extelligence Invest

By Maya Dharampal-Hornby
Exclusive: Legaltech Wordsmith raises $14m Series B extension from Index, FT Ventures
LegaltechExclusive

August 5, 2026

Exclusive: Legaltech Wordsmith raises $14m Series B extension from Index, FT Ventures

By Maya Dharampal-Hornby

Pro

Sweaty, insane, cracked: Decoding the language of founder praise
Startup lifeAnalysis

August 5, 2026

Sweaty, insane, cracked: Decoding the language of founder praise

cracked
By Éanna Kelly and Martin Coulter
Nik Storonsky in talks over new share deal for $500bn Revolut valuation
FintechNews

August 5, 2026

Nik Storonsky in talks over new share deal for $500bn Revolut valuation

By Damisola Sulaiman
‘We need the bravery to change the process’: How AI is impacting physical environments
Artificial intelligenceSponsored by

August 5, 2026

‘We need the bravery to change the process’: How AI is impacting physical environments

‘We need the bravery to change the process’: How AI is impacting physical environments
Sponsored by Nebius
Fintech startup Moss crowned Europe’s newest unicorn with €30m Series C
FintechExclusive

August 5, 2026

Fintech startup Moss crowned Europe’s newest unicorn with €30m Series C

By Damisola Sulaiman

Pro

After a decade of turning down VCs, Oxylabs hits $3.6bn valuation: 'Right timing, right partner'
DataInterview

August 5, 2026

After a decade of turning down VCs, Oxylabs hits $3.6bn valuation: 'Right timing, right partner'

Inside Oxylabs' office
By Jonathan Sinclair

Pro

The 144 new funds this year and what they reveal about Europe's investment market
FundingSifted data

August 5, 2026

The 144 new funds this year and what they reveal about Europe's investment market

Earlybird team
By Ruggero Di Spigna

Pro

A16z backs HappyRobot at $1.2bn valuation
AI agentsNews

August 4, 2026

A16z backs HappyRobot at $1.2bn valuation

The startup helps enterprises build, deploy and manage AI agents across complex workflows

By Maya Dharampal-Hornby
EU’s €5bn tech superfund officially open for business
Venture capitalNews

August 4, 2026

EU’s €5bn tech superfund officially open for business

The Scaleup Europe Fund, run by EQT, will be making its first investments in the coming weeks

By Anne Sraders
Exclusive: Nscale to provide compute to Oxford, UCL and Imperial AI researchers
Exclusive

August 4, 2026

Exclusive: Nscale to provide compute to Oxford, UCL and Imperial AI researchers

By Freya Pratty

Pro