Why is everyone pouring so much money behind the chip? A Transformative Shift
In recent times, the global trend of financial investment in the semiconductor sector has witnessed a significant upswing. One notable example is the transformation of the Pragmatic Semiconductor facility near Durham city in the UK. This erstwhile ceramic pipe factory, resembling a massive warehouse from the outside, is undergoing a remarkable metamorphosis into a state-of-the-art chip production center.
Pragmatic Semiconductor has established its own chip production line, often referred to as the ‘Fabrication Line’ or ‘Fab Line’ in the microchip sector, within this expansive facility. The company has meticulously equipped this space with cutting-edge technology, ensuring a controlled environment to prevent any pollution during the chip production process.
Towards the end of the previous year, Pragmatic Semiconductor proudly announced securing $20 million in financial funds, earmarked for the establishment of three to four chip factories. Notably, the company has garnered additional support from the British Government-backed private investment entities, namely the ‘UK Infrastructure Bank’ and the UK Commerce Bank ‘British Patient Capital.’
However, the ambitious plans of this Cambridge-based company extend beyond the current funding, as they aim to construct eight chip production lines within the repurposed ceramic pipe factory.
In today’s interconnected world, where almost every product, from smartphones and computers to cars and washing machines, relies on chip production, semiconductors have become a crucial component. Despite its pivotal role, the semiconductor industry has faced challenges in recent years, including a chip supply shortage during the pandemic. Geopolitical tensions have further exacerbated the chip supply issue, particularly with only 5 percent of the world’s most advanced chips being produced in Asia, as reported by the BBC.
David Moore, the CEO of Pragmatic, emphasizes the need for diverse chip solutions to address various challenges within the industry. While silicon remains the primary material for most chips globally, Pragmatic is taking a different approach by producing ‘flexible’ or bendable chips at its Durham chip production center. These chips can be adapted as needed, opening up innovative possibilities such as monitoring ‘Cloud Edge Authentication’ activities and tracking the movement of various parcel items.
Unlike conventional factories that install chips on Silicon Wafers, Pragmatic opts for a thin film for its chips. This unique approach allows the production of chips at a lower cost compared to standard silicone chips, making them more affordable and versatile, as highlighted by the BBC.
Moore emphasizes, “If you want to delve into true chip production, it will require a substantial financial investment of over a million dollars, coupled with several years of commitment.” He adds, “Our fabrication plant can offer affordability up to one hundred times, depending on your criteria.”
Pragmatic’s chip production process also stands out for its efficiency. While conventional chips take three to six months to produce, the company’s innovative approach allows them to manufacture chips in less than five hours.
Although these affordable and more flexible chips may not be a panacea for all challenges, they represent a significant leap forward in chip technology. As the world continues to rely on advanced chips in phones, computers, and other leading technologies, Pragmatic Semiconductor is at the forefront of revolutionizing chip production, offering cost-effective solutions in record time. The company’s approach signifies a transformative shift in the semiconductor landscape, paving the way for a more resilient and adaptable future.
