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

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