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Tracking 2022’s US$38B in Semiconductor Investments for Startups

portion—nearly US$3.8 billion—going toward batteries. Europe came
in third, with a total investment of US$5.3 billion, with Sweden leading
the way.
Several companies in the semiconductor industry received significant
investments in 2022, with the following notable deals each surpassing
US$400 million:
• NorthVolt, a Stockholm-based company, received US$1.1 billion in
convertible notes to produce lithium-ion batteries for automotive and
industrial applications.
• Ascend Elements, a Massachusetts-based company, raised a total
of US$780 million in grants, equity, debt and series investment for the
development of sustainable Li-ion battery materials and recycling.
• Hubei Rongtong High Tech Advanced Materials, based in
Huangshi, China, raised US$740 million in Series D funding for the
recycling of cathode materials for lithium iron phosphate batteries.
• CanSemi, based in Guangzhou, China, raised more than
US$670 million in investment for its 12-inch analog foundry for auto-
motive and industrial applications.
• Vital Thin Film Materials, based in Guangzhou, raised
US$634 million in Series B funding for the production and recycling
of sputtering targets and evaporation materials for physical vapor
deposition.
• Eswin Material, a Beijing-based company, raised US$575 million
in Series C funding for the production of monocrystalline silicon pol-
ished wafers and epitaxial wafers.
• Einride, a Stockholm-based company, raised US$500 million in
Series C funding in equity and debt for the production of electric trucks.
• Innoscience Technology, based in Zhuhai, China, raised
US$473 million in Series D funding for the development of power GaN
devices.
• Weride, a Guangzhou-based company, raised more than
US$400 million in Series D funding for the development of
autonomous-driving robotaxi services.
• Group 14 Technologies, based in Washington State, raised more
than US$400 million in Series C funding for the development of its
lithium-silicon batteries.
It is expected that in 2023, early-stage startups will continue to gain
momentum, as they are less affected by market fluctuations. Conversely,
a slowdown in investments is projected for companies at later stages,
such as Series C and D, as valuations are reduced in these stages. Compa-
nies with high operating costs will face the most difficulty.
Semiconductor industry consolidation is expected in the future as
companies seek to optimize resources and cut costs to remain compet-
itive and preserve cash through equity-only mergers. Companies with
diminishing financial resources and lower fundraising multiples may
find it more appealing to sell their startups in 2023, resulting in an
increase in private tech deal-making. Companies developing
cutting-edge technologies in areas like batteries, AI, quantum comput-
ing and semiconductor design will continue to attract investors, as they
are considered the most promising areas in the semiconductor sector.
The future of investment in the semiconductor industry is promising
as new technologies and industries continue to drive innovation and
growth. Despite a slowdown in investment for non-deep–tech startups,
the semiconductor sector remains resilient. A growing focus on sus-
tainable and clean energy, as well as digital transformation, will lead
to increased investment opportunities in areas like renewable energy,
electric vehicles and digital health. As the global economy continues to
recover, cross-border investment and partnerships are also expected to
rise, providing new opportunities for companies to expand and grow.
With ongoing technological advancements, the semiconductor indus-
try is poised for exciting growth and potential returns for investors. ■

Ahmed Ben Slimane is managing director at Strategic
Semiconductors, a company specializing in strategic business and
investment development.
www.eetimes.eu | MARCH 2023