Dutch Chip Manufacturing Startup Nearfield Instruments Secures €135M in Funding

Dutch chip manufacturing quality control startup Nearfield Instruments raises €135M - SiliconANGLE

Dutch chip manufacturing quality control startup Nearfield Instruments raises €135M Semiconductor manufacturing startup Nearfield Instruments B.V. said today it has closed on €135 million ($147.6 million) in Series C funding to accelerate the growth of its novel process control systems for the chipmaking industry. Today's round was led by the U.S. venture capital firm Walden Catalyst and Singapore-based Temasek. M&G Investment, Innovation Industries, Invest-NL and ING also participated in the round, the company said. The startup has developed what it calls "metrology and inspection" or M&I systems that help chipmakers to assess the quality of the chips they're manufacturing. They're userd to measure and inspect the silicon wafers that computer chips are printed onto, to ensure they meet the highest quality standards, and the company says they can do so more effectively than traditional techniques. It argues that conventional quality control techniques in the chipmaking industry have reached their limits, creating bottlenecks in the chip manufacturing supply chain. By using its Quadra 3D metrology system, chipmakers can increase their production yields when using more advanced manufacturing processes to build powerful chips for artificial intelligence workloads, the company said. The Quadra 3D metrology system is said to provide non-destructive, high- throughput, and high-resolution metrology capabilities. In an interview with Reuters, Nearfield Chief Executive Hamed Sadeghian explained that metrology is a technique that's used to measure the quality of chips after each step in the manufacturing process. It's necessary to "make sure it meets the intended standards, to avoid the loss of good chips," he said. It's rare to see startups make such a big breakthrough in the semiconductor industry, as computer chip manufacturing is dominated by a small handful of companies, such as Applied Materials Inc. in the U.S. and ASML N.V. in the Netherlands. Those companies enjoy near-monopolies in various aspects of the chip manufacturing equipment market. For instance, AMSL is the world's only manufacturer of extreme ultraviolet lithography devices, which use light beams to carve transistors into silicon wafers. Its EUV machines are essential for the manufacturer of the most advanced computer chips in the world today. The development of chipmaking equipment can cost billions of dollars, which presents an almost insurmountable barrier to entry for startups. As such, Nearfield, which was founded in 2016, is an extremely rare exception, trying to carve out a niche for itself in a key part of the lucrative market for chipmaking hardware. It has done well so far, claiming to have engaged Samsung Electronics Co. Ltd., the world's biggest supplier of dynamic random-access memory chips, as a customer. It's also holding talks with other chip manufacturers, the company said. Those are likely to be Intel Corp. and Taiwan Semiconductor Manufacturing Co., which are the only other chipmakers in the world that employ cutting-edge chipmaking techniques. Walden Catalyst's founding managing partner Young Sohn said he believes advanced semiconductors are key pillars of global innovation and growth, and the next-generation of chips will be "driven by Advanced Lithography and 3D Integration, with smaller features, deeper trenches, and tighter tolerances." As such, there's a growing need for "new process control tools to enable higher yield and throughput, and Nearfield's metrology solutions are critical for solving these process control challenges." Sadeghian said today's round comes shortly after the company's Quadra 3D system was integrated into the "first manor high-volume semiconductor manufacturing lab". He added that the funding will help to ensure Nearfield is positioned to meet the growing demand for metrology & inspection technologies, he added. "This funding will enable us to ramp up production capacity, expand our product portfolio," he said. The round is believed to be the second-largest capital raise in the semiconductor industry's fabrication equipment market in the last five years, Nearfield said.

Dutch Chip Equipment Startup Nearfield Raises $148 Million

(Reuters) - Dutch chip equipment startup Nearfield Instruments said it has raised $147.6 million (135 million euros) to ramp up production and bring several tools to market more quickly. WHY IT'S IMPORTANT Nearfield has developed chipmaking tools designed to measure and inspect silicon wafers to ensure the chips printed on them meet manufacturing standards. The conventional techniques to do so have reached their limits, Nearfield said, and its machines are necessary to ensure that chip production yield remains high with the most advanced processes needed to manufacture artificial intelligence processors. KEY QUOTE "What is important after every step of manufacturing is what has been processed is measured - so-called metrology - to make sure it meets what was intended ... to avoid the loss of good chips," Nearfield CEO Hamed Sadeghian said in an interview with Reuters. CONTEXT The chip manufacturing equipment sector is dominated by a handful of companies, including ASML in the Netherlands and Applied Materials in the U.S., that enjoy near monopolies in various subsectors of the equipment market. Startups are rare because of immense barriers to entry. Nearfield, which was founded in 2016, is a rare startup attempting to carve out a portion of the lucrative market for chipmaking equipment. The Rotterdam-based company claims Samsung Electronics as a customer, and says it is "engaged" with other advanced manufacturers. Intel and Taiwan Semiconductor Manufacturing Co are the only other chipmakers pursuing advanced techniques. BY THE NUMBERS The growth in demand for AI processors has created an opportunity for Nearfield, Sadeghian said. The market for advanced AI chips is set to grow 120% this year to roughly $110 billion, according to Yole Group research. Advanced chips need more than 2,000 process steps, and as the techniques become increasingly complex, Nearfield's inspection equipment is needed more often, Sadeghian said. WHAT'S NEXT The 170-employee company plans to use the funding provided by Walden Catalyst and Singapore state fund Temasek - among others - to grow its research and development capabilities and bring several new products to market. (Reporting by Max A. Cherney in San Francisco; Editing by Leslie Adler)

Dutch chip equipment startup Nearfield raises $148 million

Nearfield has developed chipmaking tools designed to measure and inspect silicon wafers to ensure the chips printed on them meet manufacturing standards. The conventional techniques to do so have reached their limits, Nearfield said, and its machines are necessary to ensure that chip production yield remains high with the most advanced processes needed to manufacture artificial intelligence processors. "What is important after every step of manufacturing is what has been processed is measured - so-called metrology - to make sure it meets what was intended ... to avoid the loss of good chips," Nearfield CEO Hamed Sadeghian said in an interview with Reuters. The chip manufacturing equipment sector is dominated by a handful of companies, including ASML in the Netherlands and Applied Materials in the U.S., that enjoy near monopolies in various subsectors of the equipment market. Startups are rare because of immense barriers to entry. Nearfield, which was founded in 2016, is a rare startup attempting to carve out a portion of the lucrative market for chipmaking equipment. The Rotterdam-based company claims Samsung Electronics as a customer, and says it is "engaged" with other advanced manufacturers. Intel and Taiwan Semiconductor Manufacturing Co are the only other chipmakers pursuing advanced techniques. The growth in demand for AI processors has created an opportunity for Nearfield, Sadeghian said. The market for advanced AI chips is set to grow 120% this year to roughly $110 billion, according to Yole Group research. Advanced chips need more than 2,000 process steps, and as the techniques become increasingly complex, Nearfield's inspection equipment is needed more often, Sadeghian said. The 170-employee company plans to use the funding provided by Walden Catalyst and Singapore state fund Temasek - among others - to grow its research and development capabilities and bring several new products to market. (Reporting by Max A. Cherney in San Francisco; Editing by Leslie Adler)