Pragmatic Semiconductor, a world leader in the manufacture of flexible integrated circuits, has completed a first close of its Series D funding round, securing an investment of £162 million. The company is planning a limited second close for key investors, of which £20 million additional investment is already allocated. M&G’s Catalyst and UK Infrastructure Bank co-led the funding round with participation from new investors including Northern Gritstone, Latitude and MVolution Partners, and existing investors such as British Patient Capital, Cambridge Innovation Capital and Prosperity7 Ventures (the diversified growth fund under Aramco Ventures).
The investment will enable Pragmatic to accelerate its expansion plans in the UK to meet the growing demand for its unique technology from customers worldwide. This includes building its third and fourth fabrication lines at its Pragmatic Park facility in Durham. Over the next five years Pragmatic anticipates building at least eight manufacturing lines in the UK, creating over 500 highly skilled jobs at its sites in the North East and in Cambridge.
Each line is capable of producing billions of chips that enable countless novel, fast-growing applications across multiple sectors including consumer, industrial, healthcare and beyond. Of particular interest is providing item level intelligence to trillions of fast-moving consumer goods via smart packaging that will improve re-use and recycling, transforming waste management, and enabling a circular economy. Other use cases include wearables, sensors and flexible controllers.
Over 70% of the investment secured is from UK investors who have been attracted by the significant opportunities for Pragmatic’s technology in new applications, as well as the potential of Pragmatic’s flexible integrated circuits to replace mainstream silicon chips in a wide range of use cases. In addition, the significantly lower carbon footprint of Pragmatic’s semiconductor manufacturing compared to traditional silicon chip fabrication was cited by investors as a key factor.
Innovative technologyPragmatic’s CEO David Moore said: “This successful Series D round is a clear testament to the massive opportunity for our innovative technology to enable item-level intelligence in virtually any object on the planet. Our global customers value our ultra-thin and flexible form factor, our breakthrough low cost of customisation and rapid production cycles, as well as the lower environmental footprint compared to silicon. Scaling our manufacturing capacity on the UK’s first ever 300mm wafer production lines at our site in Durham will enable us to deliver hundreds of billions of chips to customers worldwide over the coming decade.”
He added “We also see demand from customers for our unique Fab-as-a-Service deployment model. This is a modular semiconductor manufacturing approach that provides customers with access to an efficient, localised and secure supply of chips through a dedicated production facility wherever they need it.”
Pragmatic’s chairman Erik Langaker concluded: “In a challenging investment environment, this capital raise is a fantastic recognition of the strength of the company and the value of its unique technology. With this funding, Pragmatic will be able to scale its foundry capacity to produce billions of chips to meet the demand from global, blue-chip organisations that are developing innovative new use cases only possible because of Pragmatic’s flexible integrated circuits.”