UK-based startup Space Forge has raised £22.6 million (around US$30 million) in a series A funding round to develop wafer materials in space.

The Cardiff-based company plans to use microgravity and other unique conditions in space to create advanced semiconductor materials with fewer defects.

The funding will support the development of Space Forge’s spacecraft, including the ForgeStar-1 demonstrator, set to launch later this year.

This mission, called “The Forge Awakens,” follows a previous attempt in 2023 that failed due to a launch vehicle malfunction.

The series A funding round was co-led by World Fund, with other investors including US-based defense contractor Northrop Grumman.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Semiconductor supply chains are becoming a geopolitical battleground

The space-based manufacturing approach by Space Forge emerges against a backdrop of intense geopolitical competition in semiconductor production and supply chains.

Nations are actively pursuing semiconductor self-sufficiency, with the U.S. CHIPS Act, EU Chips Act, and China’s heavy investments all aimed at reducing dependencies on foreign suppliers 1.

This geopolitical tension has escalated with the U.S. imposing export restrictions and tariffs exceeding 100% on certain semiconductor technologies to limit China’s technological advancement 2.

The industry’s vulnerability is magnified by geographic concentration, as Taiwan produces over 50% of global semiconductors and 90% of advanced chips, creating a precarious chokepoint in global supply 1.

Space manufacturing could potentially offer a neutral alternative, bypassing geopolitical constraints while producing higher-quality materials that aren’t dependent on any nation’s territorial resources.

2️⃣ Material limitations drive the search for next-generation semiconductor solutions

Space Forge’s approach addresses a fundamental challenge in the semiconductor industry: silicon is reaching its physical limits for continued performance improvements.

The semiconductor industry has evolved through distinct phases since the first transistor in 1947, from discrete components to integrated circuits to VLSI and now system LSIs, with each breakthrough requiring new materials and manufacturing techniques 3.