Pragmatic Semiconductor, a global leader in manufacturing flexible integrated circuits, has successfully completed the first phase of its Series D funding round, securing an investment of £162m ($206m). The company is planning a limited second phase for key investors, with an additional £20m ($25m) already allocated. M&G’s Catalyst and UK Infrastructure Bank co-led the funding round, with new investors including Northern Gritstone, Latitude, and MVolution Partners, as well as existing investors such as British Patient Capital, Cambridge Innovation Capital, and Prosperity7 Ventures (the diversified growth fund under Aramco Ventures) participating.
This substantial investment is set to enable Pragmatic to expedite its expansion plans in the UK to meet the increasing global demand for its unique technology. This includes the construction of its 3rd and 4th fabrication lines at its Pragmatic Park facility in Durham. Over the next 5 years, Pragmatic aims to establish at least 8 manufacturing lines in the UK, creating over 500 highly skilled jobs in the North East and Cambridge.
The manufacturing lines are capable of producing billions of chips, which will support a wide array of applications across various sectors such as consumer, industrial, and healthcare. Notably, the company aims to provide item level intelligence to trillion's fast-moving consumer goods through smart packaging, significantly impacting waste management and enabling a circular economy. Other use cases include wearables, sensors, and flexible controllers.
A significant portion (over 70%) of the secured investment comes from UK investors attracted by the substantial potential of Pragmatic’s technology in new applications, as well as its capacity to replace mainstream silicon chips in various use cases. Additionally, investors were drawn to the significantly lower carbon footprint of Pragmatic’s semiconductor manufacturing compared to traditional silicon chip fabrication.
David Moore, Pragmatic’s CEO, emphasized the substantial opportunity for the company's innovative technology to enable item-level intelligence globally. He also highlighted the advantages of the company's technology, including its ultra-thin and flexible form factor, breakthrough low cost of customization, rapid production cycles, and lower environmental footprint compared to silicon.
The CEO also noted the rising demand for Pragmatic's unique Fab-as-a-Service deployment model, which offers a modular semiconductor manufacturing approach, providing customers with efficient, localized, and secure chip supply through dedicated production facilities.
The CEO of UK Infrastructure Bank, John Flint, highlighted the Bank’s investment in Pragmatic as crucial for scaling up domestic supply chains like semiconductors, which are critical to the UK’s transition to net zero. Niranjan Sirdeshpande, Global Head of Investments at M&G Catalyst Strategy, emphasized the need for patient capital to support companies like Pragmatic in expanding and honing their operations.
Erik Langaker, Pragmatic’s Chairman, expressed that the successful capital raise is a testament to the strength of the company and the value of its unique technology. He also highlighted that the funding will enable Pragmatic to scale its foundry capacity to meet the demand from global organizations developing innovative new use cases made possible by Pragmatic’s flexible integrated circuits.
