Leading DAB Fabless Chip Company Closes $28 Million

Digital Audio Broadcasting (DAB) radio products have been central to the financial health of Frontier Silicon, a fabless chip company based in the United Kingdom. The company has reported that it’s DAB chip products are now in 70 percent of all digital radios and that it also has a customer list that includes some of the most well known consumer electronic companies. Frontier lists its customers as Bang & Olufsen, Cambridge Audio, Goodmans, Grundig, Hitachi, Ministry of Sound, Philips, PURE Digital, Roberts Radio, Samsung, Sharp, Sony and TEAC.

Besides the consumer electronic companies, DAB digital radio products are apparently of interest to venture capitalist. Frontier in its latest round of funding was able to pull in $28 million. The lead investor was ACT Venture Capital. A number of existing ventures also invested.  These included Apax Partners, Alta Berkeley and BlueRun Ventures as well as a new investor, Quilvest.

Frontier has also expanded its total available market through the recent launch of a mobile digital television chip set. The Kino and Apollo chip were designed to receive terrestrial digital multimedia broadcasting (T-DMB) services on cellular hand sets. The chip set performs both broadcast reception and digital baseband processor functions.

T-Networks Added to List of Indium Phosphide Funded Companies

T-Networks has joined the list of companies, which includes  BinOptics and Infinera, that have  received venture capital funding for Indium Phosphide based integrated circuits.  T-Networks indicated that its Indium Phosphide circuits exceed the distance-extinction-power product of other optical semiconductor technologies and can be used in either non-cooled or cooled solutions for 10 Gbps and 40 Gbps transmission systems.

T-Networks, Incorporated for its latest round, Series C, received a $5.5 million investment, which brings it total funding to date to $60 million. The lead investor was TL Ventures. Other investors included Greylock Partners, U.S. Venture Partners, and Sequoia Capital.

Dolby IP Licenses Brings in $245 Million in IPO

Dolby Laboratories (NYSE:DLB), a company that depends on semiconductor license agreements for a significant amount of its revenue, has completed its initial public offering. Proceeds to Dolby were reported to be $247.5 million, net of underwriting discounts and commissions.

Dolby has over 40 semiconductor companies as customers. These include Cirrus Logic, Industrial Technology Research Institute, Matsushita Electrical, MediaTek, Sony, Yamaha and Zoran. Dolby’s technology is incorporated into integrated circuits for consumer electronics applications.

Dolby’s revenue has increased from $49 million in its fiscal 2000 year to $211 million in its latest fiscal year, which ended September 24, 2004.

China Foundry, ASMC, Gets Approval for IPO

Reports out of China have indicated that Advanced Semiconductor Manufacturing Corporation (ASMC), a major integrated circuit foundry in China, has been given approval for an initial public offering (IPO). The company hopes to list in the first quarter of 2005 and raise about $150 million dollars.

Malaysian Venture Capital Management Bhd to Invest RM200 Million

Malaysian Venture Capital Management, which has invested over RM300 million in over 60 companies since 2001, has announced that it will invest another RM200 million in 50 more companies over the next two years. Notable MEMS companies that Malaysian Venture has invested in the past include MEMS Technology Bhd, That public company is involved in the potentially lucrative miniaturized MEMS microphone and speaker market.

Celtic House Ventures, a venture firm whose latest Fund III emphasizes early-stage semiconductors, micro-electro-mechanical systems (MEMS), optics and software companies, has received a commitment from the CPP Investment Board of $50 million United States dollars.  The commitment brings the CPP Investment Board’s total commitment to Canadian private equity funds to $1.5 billion.

Sandburst Corporation, a fabless semiconductor company, which offers the HiBeam chipset for Ethernet/IP switching platforms, announced that it has received $15 million in additional funding. The round led by NeoCarta Ventures also included SpaceVest, Greylock, Matrix Partners, 3i US, Investor Growth Capital and Intel Capital. The funds are planned to help expedite the marketing of Sandburst’s HiBeam Packet Switching Chipset. The company believes that its chipset will effectively address the growing Ethernet Infrastructure market, a market the company projects could reach $17 billion by 2008

Andigilog, a fabless analog and mixed-signal semiconductor company, which offers precision temperature sensor technology for thermal management solutions for a variety of portable electronic consumer markets such as cellular phones, announced it has completed its Series A funding. The round brought in a total of $11.0 million, with the last segment of the round fetching $6.2 million. The Series A round was led by Valley Ventures, Mission Ventures and Palisades Ventures. All three venture capital firms will be represented on Andigilog’s board. These include Michael Banks of Palisades Ventures, Robert Kibble of Mission Ventures, Gregg Adkin, of Valley Ventures. Banks noted that the Andigilog’s unique intellectual property and management would most likely achieve success in the $2 billion plus sensors and thermal control product market.

Citing numerous applications of Silicon Carbide technology from renewable energy to radar, as well as a major contract to supply Silicon Carbide, Norstel AB, a spin-out of Okmetic Oy, announced that it has entered into an investment agreement valued at 20 million Euro Investors in Norstel’s technology are to include Northzone Ventures, Eqvitec Partners, Creandum and the Swedish government. Request More Information - Specify Company, Product, Etc.

Emertec2 Fund Raises 20 Million Euro for Chips and Nano

Emertec Gestion SA, based in France, plans to use its recent capital to invest in semiconductor and nanotechnology companies. Investments markets mentioned include electronic design automation (EDA), chip sets and RFID as well as advanced materials and processes. Investors in the 20 million Euro fund included AXA Private Equity, CEA Valorization, CDC Entreprises, CNRS, Natexis Private Equity, and RBC Technology Ventures.  CNRS is a French research organization.

The Emertec fund is expected to be dispersed to about 15 to 20 startups. Emertec plans to increase the fund size to about 40 million Euros by the time fund closes.  The fund traditionally has invested in European based companies.

One-Stop Custom Design House Funding Soars to $86 Million

eSilicon, which has shown the IC community what can be done with sound logistic planning, brought its funding to date up to $86 million with the completion of its Series F funding round. The $15 million round was led by Investor Growth Capital. NIF Ventures and CrossBridge Venture Partners also invested. The funds will be used to expand international operations. 

Microbridge Receives $5.5 Million For its MEMs Based Resistor Technology

Microbridge Technologies Corp. announced that it has just closed a $5.5 million Series B financing round. The round brings Microbridge’s funding to date to $7.5 million.  Microbridge’s product, an electronically programmable resistor, which also can have its temperature coefficient programmed, is based on CMOS and micromachine (MEMS) technology. In 2004, Microbridge selected X-Fab Semiconductor Foundries as its foundry. Microbridge pointed to X-Fab’s combination of MEMs and CMOS manufacturing expertise as the reason.

The company plans to use the funds for manufacturing production increase and to further its marketing effort. Zon Capital Partners led the round joined by the Business Development Bank of Canada Venture Capital, Schneider Electric Ventures, the Solidarity Fund QFL and Innovatech Montreal.

Sequoia Communications to Receive Investment from Motorola

Sequoia Communications, a fabless RF semiconductor company, announced that Motorola Ventures is investing in its Series D round extension round. Warren Holtsberg, corporate vice president, equity investing at Motorola sited Sequoia’s unique multi-mode transceiver architecture, which permitted a shortened RF design cycle, as reasons for the investment.  The shortened design cycle is attributed to the capability of the transceiver to be designed for any wireless protocol with little effort.   Sequoia estimates that a 50 percent RF design cycle reduction is readily achievable.  Third Point Ventures also participated in the round.

Micromems Raises $1.5 Million for MRAM Technology

As Cypress Semiconductor gets set to abandon its MRAM effort, Micromems has found more money to continue its MRAM development efforts.  The company has reported it raised about $1.5 million from a private placement of securities.  The funding has been planned to further Micromem’s MRAM development efforts, file patents and keep operations moving.

So why did Cypress decide to exit the market. Especially after it just passed significant development hurdles. It’s difficult to say, but the reason might be a technology breakthrough in any one of the other nonvolatile memory research areas. . In the age of nanotechnology, all bets are off on the innovative staying innovative for long. Could Cypress’ exit from the MRAM market have anything to do with Ovionics technology license to Elpida or perhaps developments in ferroelectrics at Ramtron? Will have to wait and see.  

Look outside your window today and what do you see? Ever wish you could instantly control the glare or the amount of ultraviolet light coming through your window. Well apparently now you can. Research Frontiers Inc., which just received $5 million in funding, offers smart control film. The film, once applied to windows, or your sunglasses for that matter, gives the user the capability to adjust the tint and glare – eliminating ultraviolet rays or unwanted solar heat. In the summer time, the tint on sunny windows can be automatically increased to reduce the heat entering the building. In the winter time, the tint can be reduced to let in the warmth of the sun’s winter rays. So how will the technology mix with new solar energy producing windows? Are there any plans for Research Frontiers to work with solar window companies?  

Besides potential temperature control, different applications for the product include the automotive market, where glare can be a safety hazard, as well as aircraft, and eyewear markets to name a few. Nippon Sheet Glass Co. Ltd. is one of 34 that have licensed the technology.

The four United States based funds were not named. The investment was in the form of a purchase of one million shares of the company’s common stock with five year warrants.

ASIC and Network Device Vendor Receives $10 Million

DataPower, a producer of XML security gateway products and chipsets, announced that it has secured $10 million in funding. Investors included Atlas Ventures, an early state venture capital company, Mobius Venture Capital, Seed Capital Partners and Venrock Associates.  The additional funds bring DataPower total venture capital investment to over $25 million.  The funds are expected to be used to further market acceptance of DataPower’s products and for possible acquisitions.

DataPower in 2004 introduced its XG4 ASIC based XML chip set, its fourth generation XML chip set.  DataPower has managed to accumulate a broad customer base. Customers the company lists include ADP, BAE, Bell Canada, Booz Allen Hamilton, Cendant, CIBC, the Commonwealth of Massachusetts, Department of Defense, GFKL, The Hartford, Hemscott, JPMorgan Chase Bank, Leader Technologies, Navio, Northrop Grumman, Pfizer, Principal Financial, Royal Bank of Canada, RouteOne, UBS, U.S. VA, and Wachovia.

Venture Firm Closes $400 Million Technology Fund

BA Venture Partners, a venture capital partnership, announced the closing of BAVP Fund VII, a $400 million fund. BA plans to use the capital for investments in digital consumer and the therapeutics market. Specifically $150 million is earmarked for the digital consumer space and $100 million for therapeutic technology companies.

Specifically BA Ventures sites several different industries that have been targeted.  In the electronics hardware industry, segments include semiconductors, network electronics and consumer electronics. In the services markets, the fund is looking at internet and wireless services, as well as software-as-service applications. Medical technology, which BA Ventures sees as positive as the world ages, includes therapeutic technology for oncology, inflammation, neurology and dermatology. Finally, BA Ventures also plans to invest in medical devices for orthopedic, cardiovascular and neurological problems.

Fund VII is expected to be completely invested over a period of four years.

Ovionics' Thin-Film Solar Efforts to Receive $88 Million Financial Boost

Energy Conversion Devices, Inc. (also known as ECD Ovonics) has plans to double the manufacturing capacity of its United Solar Ovionics' triple-junction, thin-film amorphous silicon photovoltaic products. The company says the funds are expected to come through a series of definitive agreements with investors as related to the private placement of common stock valued at $87.8 million. Ovionics’ technology, in addition to solar cell technology, also includes fuel cell, NiMH battery and phase-change optical memory technology. The memory technology was recently licensed to Elpida Memory for possible revolutionary integrated circuit applications. 

Heat Pump Funding Cools Chip Problems

Harris & Harris Group, Inc. reported a $1 million dollar investment in Nextreme Thermal Solutions, Inc. The investment was part of an $8 million Series A Preferred round. Nextreme has a material which can be used for the construction of a miniature heat pump. The heat pump, when placed directly on the surface of a chip package, is used to draw substantial amounts of heat away from semiconductor devices. Overheated semiconductors are a potential show stopper for the next generation of ultra-high speed chips. Without a way to dissipate the heat from the next-generation chips, applications for the chips in portable applications could be severely limited.

Other investors in the round included Spacevest (which led the round), Aurora Funds and RTI International.  Nextreme is based in Research Triangle Park, North Carolina.

Nanotechnology Center Funding For $88 Million on Track

Approximately $55 million of a planned $88 million total was reported to have been guaranteed to fund The American Technion Society’ Russell Berrie Nanotechnology Institute.  Contributors to the research center, which will research the use of nanotechnology in a number of different areas such as electronics, energy, and environmental technology, included the Russell Berrie Foundation, which pledged $26 million.  Another $26 million has been guaranteed by the Israeli Government’s Ministry of Industry and Trade.

The facility is to be located at The Technion - Israel Institute of Technology. The Technion has done extensive research work in nanotechnology.

ArchPro Next Generation Design Approach Wins Funding

ArchPro Design Automation, Inc. has scored another victory for India with Series A funding from Intel Capital. The electronic design automation company apparently hit a nerve with its design tool strategy. The company plans to develop tools for next generation 90 nanometer and 65 nanometer chip designs. 

The design of the latest chips with the latest process technologies has always been a high stakes game.  Those that bring out chips based on the latest process technologies, first, often win in the marketplace. However, new unforeseen design problems associated with the latest process technologies, will often bring down even the best market plans.   This leaves defeated chip companies pointing at the EDA tool vendors.

Just as important though is that EDA tools that address next generation process design problems, first, often gain market share quickly. This was brought out in the last next generation process design tool race, when vendors that tackled crosstalk induced delays, first, were well rewarded in the market place.

Although funding levels for Series A were not revealed, participants in the funding besides Intel also included Sage Technology Ventures (STV) LLC. The funds are expected to be used to help establish an R&D center in Bangalore, India, called PowerPlay Automation India Pty. ArchPro, based in Fremont CA, has several requisitions posted for design positions in India.

JMAR Completes $4 Million Financing

JMAR Technologies, Inc., a company that has diversified into several different markets, announced that it had completed $4 million in financing. The company plans to use the funds to speed the development and marketing of its BioSentry, X-Ray Microscope and X-Ray Nano Probe product lines. JMAR’s also designs and fabricates integrated circuits through its microelectronic division. The BioSEntry system is a system for the detection of water borne bacteria – essential for ensuring water quality.

Alternative Energy Financing Emerges

With the interest in solar energy and numerous government incentives, venture capitalists and lending institutions are expected to bring out the red carpet.  GE's Technology Lending and Energy Financial Services Initiative is one recent example. The organization just announced a program to provide financial solutions to clean energy companies.  Clean Energy companies’ products range from fuel and solar cells, to wind and wave power, and biomass gasification among others.

For those that want to speak in person with GE, Cleantech Venture Forum VI is the place to go. The conference is to be held March 22 to 24, 2005 in San Francisco. GE is a co-sponsor for the event.

Harris & Harris Invests in Biological Electronics

Harris & Harris announced that it has invested in Cambrios Technologies Corporation, a company that is developing electronics products based on biologically-directed synthesis of inorganic materials. Investors besides Harris & Harris, for the Series B round, included In-Q-Tel, Headland Ventures, and previous investors, Alloy Ventures, ARCH Venture Partners, Avalon Ventures, Lux Capital, and Oxford Bioscience Partners. Cambrios founders developed the directed-evolution technology.