Substrate, a San Francisco-based startup on a mission to restore U.S. semiconductor dominance, has secured more than $100 million in funding, putting its valuation at $1 billion, according to reporting by The Wall Street Journal.
Its backers include Peter Thiel’s Founders Fund, General Catalyst and In-Q-Tel, a nonprofit venture fund focused on helping address government challenges.
Dutch company ASML has the market cornered on manufacturing advanced lithography machines, which are key to chip production. Substrate has developed its own compact lithography device that co-founder James Proud told the WSJ can achieve results similar to those of the ASML machines used in advanced semiconductor manufacturing.
The startup plans to use that technology to establish its own semiconductor fabrication operations and is looking to start producing chips at scale as soon as 2028. By developing its tooling in house, Substrate expects to reduce the cost of chip production and has brought on employees from IBM, TSMC, Google, Applied Materials and national laboratories to support its aspirations.
