Impact Nano, chip materials startup, wins funding from Intel, Goldman Sachs

[Daniel Nenni]

A view of Massachusetts-based materials startup Impact Nano's manufacturing system which produces a tin-based chemical, aims to bring specialty chemicals production for chip manufacturing to the U.S. in Orange, Massachusetts, U.S., April 2023.

OAKLAND, California, May 4 (Reuters) - Impact Nano, a Massachusetts-based startup that makes specialty chemicals for the semiconductor industry and others, said on Thursday it raised $32 million in funding from investors including Intel Capital and Goldman Sachs Asset Management.

It also said Intel Capital's managing director, Sean Doyle, will join the board of directors.

As the U.S. tries to bring back semiconductor manufacturing with the CHIPS and Science Act, it will need to invest in building up the broader supply chain in addition to the multibillion-dollar chip fabrication facilities.

The war in Ukraine has exposed several choke points on the chemical side of the chip industry that need to be fixed. That is because Ukraine is a major producer of neon gas, a key material used in the production of chips.

"Many of the chemicals that we've been asked to synthesize so far are not currently made in North America. And they are made in regions of political instability," said Matthew Stephens, CEO and co-founder of Impact Nano.

Stephens said Impact Nano is inventing new ways to produce chemicals that chip makers use. Among the company's focus areas, he said, are increasing the purity of the chemicals, finding raw materials that are more abundant and comply with ethical guidelines, and making the process more environmentally friendly.

He declined to identify current customers but said the chemicals produced are key materials for the extreme ultraviolet lithography process (EUV) which is how today's most advanced chips are made.

The funding will be used to expand the Massachusetts factory. Stephens also said Impact Nano is looking to apply for some of the CHIPS Act funding that will support the suppliers for semiconductor manufacturing.

Goldman Sachs Asset Management is part of Goldman Sachs Group Inc (GS.N) and Intel Capital is the investment arm of U.S. chip giant Intel Corp (INTC.O).

Impact Nano, chip materials startup, wins funding from Intel, Goldman Sachs

Impact Nano, a Massachusetts-based startup that makes specialty chemicals for the semiconductor industry and others, said on Thursday it raised $32 million in funding from investors including Intel Capital and Goldman Sachs Asset Management.

www.reuters.com

 

[cliff]

Is expansion of manufacturing in Massachusetts a good idea?

 

[nghanayem]

It's always cool to see these small speciality chemicals companies, and I'm sure it is a thrilling environment for any chemist or chemical engineer building out a brand new process flow, reactors, and greenfield plant.

 

[hist78]

What exactly Impact Nano is trying to produce and replace?

It's not clear to me from its website either.

Impact Nano

impact-nano.com

 

[nghanayem]

What exactly Impact Nano is trying to produce and replace?

It's not clear to me from its website either.

Impact Nano

impact-nano.com

This screams batch reactor and flexible/reconfigurable production line to me. In the performance chemicals industry this is not uncommon. The value from their services comes from flexibility.

Customer A might want a 200 tons of chemical x and 50 of chemical y. Customer B would want 40 tons of y and 60 of z. Finally customer C would want 50 of x, 80 of y, and 20 of z. They would then configure their plant to make all of their year's worth of x, then reconfigure to make the others. Manufactured chems would be stored on site and shipped to the customer whenever the contract says they are ready.

 

[hist78]

View attachment 1184
This screams batch reactor and flexible/reconfigurable production line to me. In the performance chemicals industry this is not uncommon. The value from their services comes from flexibility.

Customer A might want a 200 tons of chemical x and 50 of chemical y. Customer B would want 40 tons of y and 60 of z. Finally customer C would want 50 of x, 80 of y, and 20 of z. They would then configure their plant to make all of their year's worth of x, then reconfigure to make the others. Manufactured chems would be stored on site and shipped to the customer whenever the contract says they are ready.

"tin-based chemical, aims to bring specialty chemicals production for chip manufacturing to the U.S. in Orange, Massachusetts, U.S."

But what exactly the breakthrough products they try to offer or replace with? Or it mainly work as a contract manufacturing service provider?

 

[nghanayem]

My understanding is probably the latter. But who knows maybe they have unique chemicals or purification methods that can deliver better quality to their customers. If that is the case though their website doesn’t really play it up.