Cambridge-based semiconductor manufacturer Pragmatic has secured a staggering £182 million in its Series D funding round, marking a significant milestone for the UK’s semiconductor industry. The funds will drive the expansion of Pragmatic’s manufacturing facilities, providing a crucial boost to domestic semiconductor production.
Pragmatic has successfully raised £162 million, with an additional £20 million earmarked for a limited second close, signaling a vote of confidence in the company’s growth prospects. In the immediate future, Pragmatic plans to utilize this substantial capital injection to construct its third and fourth fabrication lines at its state-of-the-art manufacturing facility in Durham.
These fabrication lines, capable of producing billions of Pragmatic’s flexible integrated circuits—each thinner than a human hair—will play a pivotal role in scaling the company’s manufacturing capacity. Looking ahead, Pragmatic ambitiously aims to establish a total of at least eight additional manufacturing lines in the UK over the next five years. This expansion plan is anticipated to create over 500 highly skilled jobs in the North East and Cambridge.
David Moore, the CEO of Pragmatic, expressed optimism about the company’s trajectory, stating, “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.” This bold vision positions Pragmatic as a key player in meeting the growing global demand for semiconductor technology.
Diverse Application of Pragmatic’s Flexible Chips
Founded in 2010, Pragmatic has established itself as a leading chip maker, with its flexible chips finding applications across various sectors, including healthcare and consumer goods. The versatility of Pragmatic’s technology underscores the company’s commitment to innovation and adaptability in meeting the evolving needs of diverse industries.
The Series D funding round was co-led by M&G’s Catalyst and UK Infrastructure Bank, reflecting the confidence these major players have in Pragmatic’s capabilities. Noteworthy is the participation of new investors, including Northern Gritstone—an investment firm focusing on startups and spinouts in the North of England—along with Latitude and MVolution Partners. Existing investors, such as British Patient Capital, Cambridge Innovation Capital, and Prosperity7 Ventures, further solidified their support for Pragmatic.
Earlier in the year, Pragmatic’s co-founder Scott White had hinted at the possibility of relocating operations to the US if the UK government failed to provide adequate support for the semiconductor industry. This skepticism was fueled by the anticipation of the UK government’s semiconductor strategy, which was eventually unveiled.
The industry’s concerns were partially assuaged when, in August, Pragmatic softened its stance following the publication of the UK’s long-awaited semiconductor strategy. The strategy promises funding of up to £1 billion over the next decade, demonstrating the government’s commitment to fostering growth in the semiconductor sector.
Michelle Donelan, the technology secretary, hailed Pragmatic’s funding round as a “pivotal step” in building a stronger future for the UK’s semiconductor industry. She emphasized the government’s determination to ensure companies like Pragmatic can thrive domestically, contributing to the nation’s innovation, job creation, and global standing in science and technology.
John Flint, CEO of UK Infrastructure Bank, highlighted the broader positive impact of the investment, stating, “Our investment in Pragmatic backs a British business to accelerate the development of a first-of-a-kind technology which not only cuts the carbon emissions of semiconductor production but will drive growth in the local economy in the North East.”
Pragmatic’s monumental funding round not only propels the company to new heights in semiconductor manufacturing but also serves as a beacon of hope for the UK’s semiconductor industry, positioning it as a formidable player on the global stage. The investment not only fuels technological innovation but also contributes significantly to job creation and economic growth in key regions of the UK.
