Tech sovereignty has become a key priority for many countries, particularly with the rising demand for compute power brought about by advancements in technology like artificial intelligence. In light of this, Black Semiconductor, a startup focused on semiconductor development, has received significant funding of €254.4 million (approximately $273 million) to support Germany and Europe’s efforts in this area.
Black Semiconductor, a spin-out from the University of Aachen founded by brothers Daniel and Sebastian Schall, is developing chip-connecting technology based on graphene. The funding will be used to further the company’s research and development, establish a pilot production facility in Aachen, expand its team of engineers and employees, and strengthen its business development by collaborating with major chip manufacturers and hyperscaler technology companies across Europe.
According to Daniel Schall, the CEO of Black Semiconductor, the company aims to start producing commercial, volume-ready products by 2031. While the company is still in its early stages and faces risks associated with pioneering technology, Schall emphasized the importance of thoroughness and problem-solving within a certain time frame and budget.
The funding round, known as Series A, is significant not only because of its size but also due to its intention. The German federal government and North-Rhine-Westphalia are providing €228.7 million through a combination of equity and funding from the “Important Project of Common European Interest” provision. This provision set aside €8.1 billion in state aid specifically for technological advancements like the one being pursued by Black Semiconductor. The remaining €25.7 million comes from a traditional equity round, with leading investors including Porsche Ventures and Project A Ventures.
The interest in Black Semiconductor extends beyond the data center industry. The involvement of Porsche Ventures highlights the automotive sector’s increasing demand for technology to enhance connected vehicles, including autonomous functions, diagnostics, and cloud-based systems. This investment presents an opportunity for Black Semiconductor to integrate photonics technology seamlessly into conventional chips, thereby serving various industries and future AI applications.
Daniel Schall’s passion for understanding how electronics work dates back to his childhood when he began dismantling radios to explore their inner workings. This led him to develop a deep interest in semiconductors during his university studies. Working with graphene at Aachen, Schall and his team devised a concept to use this material, known for its optimal photonics properties, for chip connectivity. While many current chip connectivity efforts focus on silicon-based photonics, Schall saw an opportunity to revolutionize the field by commercializing his research.
Efficiency in computation is a primary concern for Black Semiconductor. By addressing the connectivity challenge, the company aims to improve overall efficiency and reduce costs for cloud computing providers operating data centers. This not only improves profit margins but also enables scalability to meet growing data usage requirements. Black Semiconductor is actively engaging with potential customers in the ecosystem to understand their needs and generate interest in its technology, even before it is commercially available.
The funding announcement for Black Semiconductor highlights its technological ambition and demonstrated competence. Partners like Amazon Web Services (AWS) view the company’s commitment to pushing boundaries as aligned with their own values. AWS has a strong track record of supporting startups, making them a trusted partner. While Black Semiconductor has not disclosed its valuation, it is evident that the company’s progress has garnered recognition and interest from key players in the industry.
In conclusion, Black Semiconductor’s success in securing significant funding reflects the growing importance of tech sovereignty and the demand for innovative chip technology. The company’s focus on chip connectivity using graphene presents a unique opportunity to address existing challenges and drive efficiency in computation. With the support of major investors and partnerships, Black Semiconductor is poised to contribute to Europe’s chip ecosystem and bring about technological advancements that will benefit various industries. By prioritizing thorough research and development while actively engaging with potential customers, Black Semiconductor is on track to make a significant impact in the field of semiconductors.
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