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Etched secures chip production with TSMC; seeks Arizona manufacturing support

Aggregated by BrevFeed startups · updated 3h ago
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Etched, a $5 billion semiconductor startup, announced its first chip production with TSMC. The company aims to overcome manufacturing challenges by potentially resourcing production to TSMC's Arizona facility as part of a strategy backed by investor Jack Selby.

Key points

Etched's Chip Production Announcement

Etched announced this week that its first chip has been manufactured by TSMC earlier this year. The startup, valued at $5 billion, plans to ship systems powered by this chip to customers later this summer. However, scaling production could be difficult due to TSMC’s limited manufacturing capacity.

Potential Reshoring to Arizona

Copper Sky Capital, an early investor in Etched, believes that the startup can overcome manufacturing hurdles by eventually shifting chip production to TSMC's facility in Arizona. This is part of a broader strategy to enhance local semiconductor capabilities.

Jack Selby, founder of Copper Sky and a board member of the Arizona Commerce Authority, aims to strengthen Arizona's semiconductor industry by attracting businesses to invest in local manufacturing.

Investment Strategy of Copper Sky Capital

Copper Sky Capital, founded by Selby in 2021, initially focused on the Southwestern U.S. with its first $115 million fund. The firm is now expanding its investment strategy to include hardware and defense sector startups with potential manufacturing operations in Arizona, as well as raising a $300 million second fund to target higher-priced coastal companies.

Industry Implications

Etched's advancement highlights the evolving landscape of semiconductor manufacturing, particularly in the U.S., where geographic shifts may influence production capabilities and costs.

The collaboration between Copper Sky Capital and Etched exemplifies how connections in local industries can foster growth and investment in emerging startups.

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Etched, a $5 billion semiconductor startup, announced its first chip production with TSMC. The company aims to overcome manufacturing challenges by potentially resourcing production to TSMC's Arizona facility as part of a strategy backed by investor Jack Selby.