German company FMC aims to set new industry standards.
The German semiconductor start-up FMC, short for Ferroelectric Memory Company, has raised €100 million in funding. Of this, €77 million comes from private investors such as HV Capital and Bosch, while the remainder is provided through government research grants. The funds are intended to accelerate the market readiness of FMC’s memory chips.
The technology relies on hafnium oxide applied to a silicon base, the key material for semiconductor chips. According to the Dresden-based company, these chips are significantly faster, more cost-effective, and more energy-efficient than established alternatives. They can retain information without a continuous power supply, drastically reducing energy consumption. Key applications include AI data centers and edge AI devices that process data directly on-site.
Suppliers from Asia and the U.S. currently dominate the memory chip market, notes the German Handelsblatt. The last major European manufacturer, Qimonda, went bankrupt in 2009. FMC’s technology, however, is developed based on knowledge acquired from Qimonda.
One of the Largest Funding Rounds in the European Semiconductor Sector
The start-up plans to source its components from contract manufacturers initially and describes the funding round as one of the largest in Europe’s semiconductor sector. On a global scale, however, the amount is relatively modest, according to Handelsblatt. Analysts also note that competing memory chip technologies exist, leaving it uncertain whether FMC’s system will become the new industry standard.
Nevertheless, the announcement could have a signaling effect for Europe’s semiconductor industry. With its 2022 Chips Act, the EU set ambitious goals for the domestic sector, goals that are now widely considered unlikely to be met. Further setbacks include the cancellation of several U.S. companies’ plans to build semiconductor plants in Europe. At the same time, most European companies reliant on chips express a strong desire for greater resilience in local supply chains, according to a recent survey by the German digital association Bitkom.
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