Graphene chip developer Black Semiconductor has raised €254.4 million (~$275.4 million) in funding. The startup is developing a method to build networks of graphene-based chips to speed network communications and facilitate optical chip-to-chip connections. The company said that it plans to use the funding to accelerate R&D initiatives, establish pilot line manufacturing capabilities, and boost the company’s workforce.

Specifically, the investment will enable the company to advance its 300-mm wafer pilot production facility, according to company co-founder and CEO Daniel Schall. The company plans to open a pilot manufacturing facility in Aachen, Germany, by 2026 to demonstrate integration of graphene into electronic chips, with mass production planned for 2031. According to Black Semiconductor, the platform provides a significant lowering of manufacturing costs by reducing the number of production steps by more than half. The technology has applications in data centers, generative and embedded AI, and autonomous driving.

Black Semiconductor's funding breakdown comprises €228.7 million in public funding from the German Ministry of Economic Affairs and Climate Action and the state of North Rhine-Westphalia over the next seven years. Alongside the public funding, the company secured an additional €25.7 million in equity funding. The round was led by Porsche Ventures and Project A ventures, with participation from Scania Growth Capital, Capnamic, Tech Vision Fonds, and NRW.BANK.