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

AI is turning finance from reactive to proactive
Artificial intelligencePaid for and produced by

October 14, 2026

AI is turning finance from reactive to proactive

AI is turning finance from reactive to proactive
Paid for and produced by Intuit QuickBooks
How I became a community manager at Lovable
Startup lifeInterview

October 14, 2026

How I became a community manager at Lovable

How I became a community manager at Lovable
By Éanna Kelly
What US Big Tech taught me about leading a startup — and what I had to unlearn
Startup lifeOpinion

October 14, 2026

What US Big Tech taught me about leading a startup — and what I had to unlearn

What US Big Tech taught me about leading a startup — and what I had to unlearn
By Ben Chisell
‘There's never a right time to start’: Why founders don’t need a master plan before starting a business
Startup lifeSponsored by

October 14, 2026

‘There's never a right time to start’: Why founders don’t need a master plan before starting a business

‘There's never a right time to start’: Why founders don’t need a master plan before starting a business
Sponsored by OpenPayd
‘Fundraising is uncapped here’: Why Europe’s quantum founders are bullish about building homegrown champions
QuantumAnalysis

October 14, 2026

‘Fundraising is uncapped here’: Why Europe’s quantum founders are bullish about building homegrown champions

By Daphné Leprince-Ringuet

Pro

14 Portuguese fintech startups to watch, according to VCs
FintechInvestor survey

October 14, 2026

14 Portuguese fintech startups to watch, according to VCs

The number of fintech startups in the country has grown more than 10x over the past decade

By Damisola Sulaiman

Pro

The 68 most promising impact startups in Europe, according to investors
Climate techExclusive

October 14, 2026

The 68 most promising impact startups in Europe, according to investors

Jacob Nathan and Doug Kell, the founders of Epoch Biodesign.
By Freya Pratty

Pro

Where Europe's most active pre-seed investors are looking next
Venture capitalInterview

October 14, 2026

Where Europe's most active pre-seed investors are looking next

By Oshin Narang

Pro

UK’s first VC fund for refugee founders launches, backed by Atomico
Venture capitalNews

October 14, 2026

UK’s first VC fund for refugee founders launches, backed by Atomico

By Martin Coulter
Nvidia announces billion-dollar investments in European tech
Artificial intelligenceNews

October 13, 2026

Nvidia announces billion-dollar investments in European tech

By Daphné Leprince-Ringuet
‘People just don’t care’: why fintech sovereignty won’t work in Europe
FintechAnalysis

October 13, 2026

‘People just don’t care’: why fintech sovereignty won’t work in Europe

Sifted Summit fintech sovereignty
By Damisola Sulaiman

Pro

Five Luxembourg companies turning traction into growth
Startup lifePaid for and produced by

October 13, 2026

Five Luxembourg companies turning traction into growth

Five Luxembourg companies turning traction into growth
Paid for and produced by Luxinnovation
Inside SF's growing ecosystem for European founders
Venture capitalFeatures

October 13, 2026

Inside SF's growing ecosystem for European founders

I found an entire ecosystem of investors, accelerators and founder communities geared towards helping Europeans make the move

By Maya Dharampal-Hornby
What will it take for Europe to win in physical AI?
Artificial intelligenceAnalysis

October 13, 2026

What will it take for Europe to win in physical AI?

Physical AI is booming in Europe, but success will be defined by incumbents’ willingness to adopt the technology

By Daphné Leprince-Ringuet

Pro

This ex-Pleo exec plans on taking on US rivals with his ‘AI CFO’ startup
FintechInterview

October 13, 2026

This ex-Pleo exec plans on taking on US rivals with his ‘AI CFO’ startup

Jonathan Sanders Light
By Damisola Sulaiman

Pro

Where the next big companies in Europe could come from, according to US investor
Venture capitalInterview

October 13, 2026

Where the next big companies in Europe could come from, according to US investor

Abby Meyers of Bain Capital Ventures
By Anne Sraders

Pro

Stryker to invest $400m in CMR Surgical, with option to buy it outright
RoboticsNews

October 12, 2026

Stryker to invest $400m in CMR Surgical, with option to buy it outright

By Tom Nugent
Energy unicorn 1Komma5 raises €70m as IPO plans remain on ice
Climate techNews

October 12, 2026

Energy unicorn 1Komma5 raises €70m as IPO plans remain on ice

By Martin Coulter
UK government mulls compulsory AI safety reporting
Policy and regulationNews

October 12, 2026

UK government mulls compulsory AI safety reporting

AI minister Kanishka Narayan is expected to warn that developers must do more to control increasingly autonomous models

By Martin Coulter
European consumers are begging for better customer support
Artificial intelligencePaid for and produced by

October 12, 2026

European consumers are begging for better customer support

European consumers are begging for better customer support
Paid for and produced by Parloa
Europe’s fastest-growing fintechs are queueing up for growth-stage funding rounds
FundingSifted data

October 12, 2026

Europe’s fastest-growing fintechs are queueing up for growth-stage funding rounds

A picture of Griffin's founders.
By Ruggero Di Spigna

Pro

The ‘biggest threat’ China poses for European startups isn’t what you think
DeeptechInterview

October 12, 2026

The ‘biggest threat’ China poses for European startups isn’t what you think

By Anne Sraders

Pro

Exclusive: Project Europe leads step down as fund readies next chapter
Venture capitalExclusive

October 12, 2026

Exclusive: Project Europe leads step down as fund readies next chapter

By Martin Coulter

Pro

Scarcity is the mother of European AI invention
Artificial intelligenceSifted View

October 12, 2026

Scarcity is the mother of European AI invention

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

Pro