Ecosystems

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German startup Fernride bags $50M to make trucking autonomous

Corporates and innovation, Ecosystems, Investors and funding, Startups and technology / /

Munich-based autonomous trucking startup Fernride has closed a further $19mn in its Series A funding round, neatly pushing the total amount raised in the round to $50mn. 

Founded in 2019, Fernride has developed autonomous vehicle software that converts trucks into self-driving machines. These haulers operate at Level 4 autonomy which means the vehicle can drive itself within a specific area — albeit with a bit of supervision from a remote driver.   

There is a current shortage of 400,000 truck drivers in Europe — a figure projected to increase to two million by 2026. Despite autonomous driving being a potential solution to these challenges, many attempts to introduce such autonomy fail, partly due to regulatory roadblocks.

A spin-off from the Technical University of Munich, Fernride bypasses some of the red tape hindering other self-driving car companies by focusing (for now) on trucks for private industrial sites like factories, terminals, and shipyards. This allows the company to scale its product now, and tackle the multiplicity of problems associated with deploying autonomous vehicles on public roads later.

Fernride is currently working with four big names, including Volkswagen’s logistics unit and DB Schenker, part of the German rail group Deutsche Bahn. It currently has a fleet of six autonomous trucks with plans to scale to 20 by the end of 2023. These yard trucks are limited to 30 kmph, and stop to call a remote operator if they don’t “understand” a situation. Fernride trains a remote operator on every site where its trucks are deployed. 

The trucks are supervised by a so-called teleoperator. Credit: Fernride

New investors include Germany’s DeepTech and Climate Fonds (DTCF) and the ERP special fund, as well as Munich Re Ventures, Bayern Kapital, and Klaus Kleinfeld, who becomes chair of Fernride’s board.       

“By starting with teleoperations that initially keeps a human in the loop, we believe Fernride’s step-by-step approach is the optimal path towards building fully autonomous capabilities,” said Timur Davis, director at Munich Re Ventures.  

Armed with fresh funds, the startup now looks to scale operations with its existing customers (which alone have a combined 1,000 yard trucks suitable for automation). Fernride also looks to explore new customers and markets, with plans to expand to the US sometime in 2025.  

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French car battery startup secures €2bn as EU looks to wean itself off Chinese tech

Corporates and innovation, Ecosystems, Startups and technology / /

French car battery startup Verkor has secured €2bn to build its first manufacturing plant in France, at a time when Chinese competitors are rapidly gaining market share in Europe.  

The funding round includes €650mn in French subsidies, a sizeable level of state support indicative of the government’s commitment to boosting local production of lithium-ion batteries — the beating hearts of electric cars.  

Construction of the mega-factory will kick off next month and is expected to create 1,200 jobs in the region. Verkor predicts the plant will be able to equip 200,000-300,000 electric cars a year once it enters operations, scheduled for 2025. 

“We are working hard to make sure these batteries can be more competitive in terms of costs,” Verkor CEO Benoit Lemaignan told Bloomberg. “We want our clients to be able to sell affordable cars. There is an increasing awareness that Europe needs a local battery ecosystem.” 

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Verkor now joins the ranks of several notable European battery startups like Northvolt, ACC, and Freyr who are pushing to build a strong domestic supply chain in the face of rising competition from China.

However, despite EU-wide efforts to cut reliance on foreign imports of key technologies, six of the world’s top 10 EV battery producers are Chinese companies (like CATL, BYD, and Gotion) which have a combined 63% share of the market. Just yesterday, Volkswagen-backed Gotion announced it has started making lithium-ion batteries at its new gigafactory in Gottingen, Germany, with plans to ramp up production to 5GWh by mid-2024. 

The carrot or the stick?

EU officials have long worried that too much reliance on a single supplier for key technologies makes them vulnerable to supply chain shocks and geopolitical risks.

A new paper prepared for EU officials and leaked to Reuters this week added weight to these concerns, warning that the bloc could become as dependent on China for lithium-ion batteries and fuel cells by 2030 as it was on Russia for energy before the war in Ukraine.

And it’s not just batteries where China is storming ahead. The Asian powerhouse is dominating the production of everything from solar panels to semiconductors and is even rubbing shoulders with Europe’s beloved car brands. China’s share of electric cars sold in Europe has risen to 8% and could reach 15% in 2025. 

The EU is so concerned about China’s rising market share in EVs that it launched an investigation last week on whether to impose punitive tariffs to protect local producers against cheaper Chinese imports. 

“Global markets are now flooded with cheaper electric cars. And their price is kept artificially low by huge state subsidies,” said European Commission President Ursula von der Leyen.  

French President Emmanuel Macron has been calling for such an investigation for months and welcomed the news with open arms. However, Beijing called the probe  “protectionist” and warned it would damage economic relations, a concern shared by some in Europe’s car industry. 

Mercedes Benz said protectionist measures were counterproductive while Bosch said a race for punitive tariffs and trade barriers would only have “losers”. For many automakers, China is a partner, not a competitor. 

Germany’s VDA auto association added that the EU must take into account a possible backlash from China and focus on creating the conditions for European players to succeed — from lowering electricity prices to reducing bureaucratic hurdles. 

The same could be said for the batteries that power these cars. A report released earlier this year by the campaign group Transport & Environment (T&E) suggests that Europe has the potential to meet its EV and energy storage demands without any Chinese imports by 2027 — as long as it boosts subsidies and support for local manufacturers. 

“Europe needs the financial firepower to support its green industries in the global race with America and China,” said Julia Poliscanova, senior director for vehicles and e-mobility at T&E.

Whether the EU will take the carrot or the stick approach to the increasing perceived threat from China is unclear at this point. But with the green transition more urgent than ever, it would perhaps be wiser to build bridges with the world’s largest tech manufacturer than break them.

French car battery startup secures €2bn as EU looks to wean itself off Chinese tech Read More »

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Meet the VC on a mission to bridge climate tech’s funding gap

Ecosystems, Investors and funding, Next Featured, Sustainability / /

When it comes to saving the world — or, let’s face it, civilisation, the planet will recover — there is no silver bullet. Rather, it is going to take a holistic approach of caring for the Earth and each other. 

A technological revolution got us into this pickle. Ironically, technology might just be the Hail Mary that will pull us, if not entirely out of it, then at least away from the brink of total disaster. But in order for that to happen, it is us humans who need to set our minds — and money — to it.

Recently launched venture capital firm Transition wants to support emerging technologies looking to help our planet. This includes, but is not exclusive to, reducing carbon emissions. Based out of London with offices in Reykjavik and New York, the climate tech VC is the brainchild of a group of experienced funders who saw a tremendous gap between early stage and later stage funding in the sector. 

“What we saw was that there was this real gap in the market where there was a lot of activity at angel stage and seed stage. And then there is an enormous amount of capital available for later stage investing, which will only grow due to climate-focused targets,” Kristian Branaes, one of Transition’s partners, previously with CPP Investments and Atomico, told TNW. 

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“But there are actually very few companies that make it out from all the great accelerators and incubators that exist, and very few that can absorb a lot of capital,” Branaes added, referring to an increasing interest from very large organisations, such as pension funds, to invest more in clean and climate tech. This means that a lot of technology currently being developed risks being left behind. 

Indeed, data supports Branaes’ and his partners’ observations. A report published by Economist Impact last week found that, in 2021, only 6% of private investment in the sector went to emerging or early-adoption technologies. The remaining 94% was directed towards more mature tech, such as EVs, energy storage, and solar power.

Climate tech lost in translation

The relationship between equity investing and climate tech is an inherently complicated one. The two sectors, finance and science/engineering, not only have a different vocabulary but also work according to very different time horizons. To function well together, the funding side will need to get comfortable with different measures of success and potentially new revenue models. Meanwhile, scientist-founders need to find ways of translating innovation to commercialisation and business plans. 

“We see a lot of scientists coming out of PhD or postdoc, towards the beginning of their academic professional career, that have been very much focused on one topic, or a very narrow scope, and completely understand that topic,” said Transition Venture Partner Bruis Van Vlijmen.  The key to the “translation puzzle,” he states, is to be able to look up and see the complete picture. 

And Van Vlijmen should know. He has trained on traditional thermo-mechanical storage systems at TU Delft in the Netherlands, and worked on ocean wave energy generation at UC Berkeley and energy storage solutions at Stanford, before becoming involved in the VC/startup ecosystem in the SF Bay Area. 

“That translation [between science and business], I think, really comes from being able to kind of download all the scientific knowledge from the depths of your understanding to something like a common playing field and an economic framework that everyone can understand.”

In service of planetary life-support systems

Transition began raising funds in June 2022 (according to a Securities and Exchange filing amounting to $200mn). The firm focuses specifically on companies that will help restore/improve/reduce human detrimental impact on one of the “planetary boundaries.” 

These were defined by a group of researchers in 2009, and are processes that regulate the stability and resilience of the Earth’s system at risk due to human activity — including climate, biodiversity, and land system change. 

Exceeding the safe operation within these boundaries could, the researchers argued, “be deleterious or even catastrophic due to the risk of crossing thresholds that will trigger non-linear, abrupt environmental change within continental- to planetary-scale systems.”

In an update to the study published in Nature earlier this year, scientists found that humans have surpassed seven out of eight boundaries. 

“We think of climate in a slightly broader way, rather than just focusing on, say, a specific CO2 cutoff point,” Branaes said. “And that’s because what matters to us is having a livable prosperous planet for all of us to enjoy.”

Unlocking the business side of innovation

This broader impact strategy is evident in the startups that Transition has chosen to back this far. Among them are Waterplan, which develops software for enterprises to measure, respond, and report on increasingly changing water risk. Others are plant-based plastics developer FabricNano, and SixWheel, which offers a swappable battery solution and charging network for trucks. 

Another still is Phase Biolabs based out of Nottingham, UK, for which Transition led the seed round in 2022. The company uses a gas fermentation process where captured CO2 is introduced into a tank where it is “eaten” by patented microbes, which produces chemicals and fuels, similar to the process of making wine or beer. 

“The biggest thing Transition has done for us is reinforce some of the key things that you need to kind of figure out or unlock on the business side of establishing a new company,” said David Ortega, founder, CEO and CTO, of Phase Biolabs. 

“Because of their diverse and experienced team, they have been able to provide that guidance that someone like me, who lacks that experience, needs to try and make fewer mistakes,” Ortega continued, adding how important it is for scientists to learn how to translate their technology into a value proposition. 

Along with Branaes, Transition’s other partners are Mona Alsubaei (formerly with Union Square Ventures), David Helgason (founder of Unity Technologies), and Ari Helgasson (previously an investor at Index Ventures and Dawn Capital, and co-founder of Uphance and ecommerce startup Fabricly). 

There may not be one single solution that will solve the challenges we collectively face. However, as a Swedish saying goes, “small streams make great rivers.” If all the amazing innovation that exists and is yet to be discovered out there receives the right level of support, we may just stand a chance.  

Meet the VC on a mission to bridge climate tech’s funding gap Read More »

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UK’s new AI principles target ‘pro-innovation’ edge over the EU

Ecosystems, Government and policy, Startups and technology / /

Britain has expanded its principles-based approach to AI regulation, which aims to create a pro-innovation edge over the EU.

In an announcement yesterday, the UK government unveiled seven new principles for so-called foundation models (FMs), which underpin applications such as ChatGPT, Google’s Bard, and Midjourney. Trained on immense datasets and adaptable to various applications, these systems are at the epicentre of the AI boom.

Their power has also sparked alarm. Critics warn that FMs can amplify inequalities, spread inaccurate information, and leave huge carbon footprints. The new principles are designed to mitigate these risks. Yet they also aim to spur innovation, competition, and economic growth.

“There is real potential for this technology to turbocharge productivity and make millions of everyday tasks easier — but we can’t take a positive future for granted,” said Sarah Cardell, CEO of Britain’s anti-trust regulator, the Competition and Markets Authority (CMA).

To safeguard that future, the CMA set out the following principles:

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  1. Accountability – FM developers and deployers are accountable for outputs provided to consumers.
  2. Access – ongoing ready access to key inputs, without unnecessary restrictions.
  3. Diversity – sustained diversity of business models, including both open and closed.
  4. Choice – sufficient choice for businesses so they can decide how to use FMs.
  5. Flexibility – having the flexibility to switch and/or use multiple FMs according to need.
  6. Fair dealing – no anti-competitive conduct, including anti-competitive self-preferencing, tying, or bundling.
  7. Transparency – consumers and businesses are given information about the risks and limitations of FM-generated content so they can make informed choices.

Broad in nature, the principles reflect British plans to gain a global foothold in AI.

Across the channel, the EU has taken a more centralised approach to regulation, with a stricter emphasis on safety. At the cornerstone of the bloc’s vision is the landmark AI Act — the first-ever comprehensive legislation for artificial intelligence. The rulebook has won praise from safety experts, but criticism from businesses. In a recent open letter, a group of executives at some of Europe’s biggest companies warned that the proposals “would jeopardise Europe’s competitiveness and technological sovereignty.”

Notably, the UK government has also publicly criticised the EU’s AI regulation. When reports emerged that Britain’s tech sector is the most valuable in Europe, the country’s “less centralised” and “pro-innovation” programme was spotlighted for praise. 

At the foundation of this approach is a principles-based framework. Rather than relying on rules that are overseen by a new body, the framework emphasises adaptable guidance and delegates responsibility to existing regulators.

It’s an approach that’s raised suspicions among AI ethicists, but praise from businesses. Gareth Mills, a partner at law Charles Russell Speechlys who represents clients in the tech sector, described the new principles as “necessarily broad”

“The principles themselves are clearly aimed at facilitating a dynamic sector with low entry requirements that allows smaller players to compete effectively with more established names, whilst at the same time mitigating against the potential for AI technologies to have adverse consequences for consumers,” he said.

Mills also praised the CMA’s collaboration with the tech sector. In the coming months, the regulator aims to further consult leading FM developers such as Google, Meta, OpenAI, Microsoft, NVIDIA, and Anthropic. It will also speak to other regulators, consumer groups, civil society, government experts, and other regulators.

“The CMA has shown a laudable willingness to engage proactively with the rapidly growing AI sector, to ensure that its competition and consumer protection agendas are engaged [at] as early a juncture as possible,” said Mills.

However, not everyone is so impressed by the approach. In recent years, a flood of AI principles and codes of ethics have been released, but critics argue that they’re “useless.”

“AI ethical principles are useless, failing to mitigate the racial, social, and environmental damages of AI technologies in any meaningful sense,” Luke Munn, a researcher at Western Sydney University, said in a recent paper. “The result is a gap between high-minded principles and technological practice.”

UK’s new AI principles target ‘pro-innovation’ edge over the EU Read More »

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European fintech funding drops 70% in first half of 2023

Ecosystems, Fintech and ecommerce, Investors and funding, Startups and technology / /

Fintech funding in Europe has been greatly affected by the challenging economic environment, the latest report by Finch Capital has found. Specifically, startups in the sector raised a total of €4.6bn in the first half of 2023 — down 70% from €15.3bn in H1 2022.

“Since mid-2022 we have seen an increase in investment discipline in public and private markets, resulting in less funding, lay-offs, less IPOs, flight to quality, and focus on capital efficiency,” said Radboud Vlaar, Managing Partner at Finch Capital.

Amid this increased funding discipline, this year’s first half has seen a 48% decline in the number of deals (434 in total) alongside an 84% decrease in M&A transaction sizes, compared to the equivalent 2022 levels. On the bright side, overall M&A activity fell only by 5% with volumes to match those of the past year.

Meanwhile, although the top 20 funding rounds are back to pre-2020 levels, investment dropped the most for the rest, which accounted for less than 40% of the total deal volume. Startups in the Series A to C stages have felt the heaviest impact. In contrast, seed rounds continued to attract funding.

Slide from the State of European Fintech Report 2023
Credit: Finch Capital

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From a valuation perspective, public markets have withdrawn to 2019 levels, after record growth in 2020-2021, but are showing signs of stabilisation. Private markets are also transitioning to 2019 valuation levels at a comparable but slower pace.

“We should also start to see a slow recovery of the IPO market in the next semester as valuations have started to slowly pick up and inflation is declining,” noted Vlaar.

Crypto on the rise

Crypto and Lending have attracted most of the investments, displacing Payments and Banking — a traditionally resilient category that saw record capital deployed in 2022. Notably, one in three fintech startups are now labelled as crypto/blockchain.

From B2C to B2B

The report has also found that the trend of the past years towards B2B fintech is here to stay. One reason why is the growing interest in regulation technology as payments and open banking are increasingly consolidating. Another is generative AI’s potential applications in retail banking and the insurance sector.

The UK leads in funding

A well-established fintech hotspot, the UK has shown more resilience and accounted for over 50% of the funding in Europe.

Nevertheless, the UK, Germany, and France also saw a 70% decline in funding value, but optimistically, exits continued consistently. Poland recorded the biggest drop at 89.9%. Overall, countries with an active Series A-B investor base, have seen valuations hold up with small increases in post-money valuations.

The “new normal”

“Consolidation and more competitive investment flows, combined with still significant levels of undeployed capital, will bring maturity to the fintech sector. This new normal level of activity demonstrates the refocus of the fintech ecosystem on long term sustainability versus short term gains,” said Vlaar.

And although the overall environment will continue to be challenging in the next 12 months, he added that this will result in “a more healthy and sustainable startup, hiring, and investor ecosystem.”

European fintech funding drops 70% in first half of 2023 Read More »

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‘World’s most accurate’ startup data platform to identify gaps in AI ecosystem

Artificial Intelligence, Ecosystems, Investors and funding, UK / /

Today, the Saïd Business School at the University of Oxford, along with early-stage VC OpenOcean, released what they call “the world’s most accurate open access startup insights platform” — the O3. 

The platform is the result of three years of research from Oxford Saïd and 13 years of experience of data economy investing from OpenOcean. It leverages public and private data sources and is meant to help improve decision making across the UK tech ecosystem, through “granular data on startups and their technology stack, solutions, and go-to-market strategies.” 

“In my time in venture capital, far too often the choice of which startups receive funding has come down to instinct and opportunistic use of data, rather than accurate definition and comparison of startups,” said Ekaterina Almasque, General Partner at OpenOcean. “We wanted to change that, creating a platform that cuts through the noise, and removes bias from decision-making.” 

The O3 platform has already screened 16,913 UK startups according to a unique taxonomy developed by Oxford Saïd. For an initial analysis, it has looked specifically at high-growth startups that use or facilitate AI (close to 1,300), and has come up with some interesting findings about the sector.

AI startups a small portion of UK tech ecosystem

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The UK government has asserted that it is going to make the country an AI powerhouse. However, thus far, the number of UK startups with a pronounced AI focus make up less than 10% of the ecosystem. 

Mari Sako, Professor of Management Studies at Oxford Saïd, believes that the O3 will enable policymakers, researchers, founders, and investors to clearly identify gaps and opportunities in the AI ecosystem. “We believe this platform has immense potential to aid innovators in making informed decisions based on sound data, and to boost research on AI,” Sako said.  

UK fintech is generally a top investment destination in Europe, but when it comes to AI, the health tech startup segment receives more funding (£2.6bn vs. £3.4bn, respectively). 

Startups using AI for recognition tasks, including but not exclusive to facial recognition, have collectively raised the most funding (£6bn). Meanwhile, among the least funded are those focusing on privacy protection (£1.2bn). 

The analysis has also uncovered, perhaps unsurprisingly, a significant bias towards London for startup fundraising. However, there is also notable support in Bristol, Oxford, and Cambridge. 

According to the originators of the platform, the UK is only the beginning. “We want to see it expand to cover more markets and geographies,” Almasque continued. “It is a community driven project, built on open access, where the more stakeholders participate, the more powerful is the common knowledge.”

‘World’s most accurate’ startup data platform to identify gaps in AI ecosystem Read More »

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NordicNinja raises €200M fund for climate, deep tech startups

Deep tech, Ecosystems, Investors and funding, Startups and technology, Sustainability / /

NordicNinja, the largest Japanese VC in Europe, has raised a fresh fund of €200mn for early-stage startups active in climate and deep tech, with particular focus on the intersection between sustainability and digitalisation.

Alongside the funding, startups will receive support and access to a network of over 120 blue chip Japanese corporations.

Founded in 2019, NordicNinja is led by a team of founders, engineers, and operators turned investors from Northern Europe and Japan. While the firm’s focal point has been so far on the Nordics and the Baltics, it’s now expanding to the UK, Ireland, and BeNeLux countries. Its headquarters are in Helsinki.

NordicNinja’s first €110mn fund was invested in a total of 20 companies, three of which have achieved unicorn status: Sweden-based Einride and Voi and Estonian Bolt. Overall, the VC funded technologies ranging from self-driving electric trucks and climate action toolkits for cities, to AI identity verification and mixed reality headsets for astronauts.

According to the company, the second fund will continue targeting climate and deep tech startups whose founders are driving sustainability and digital transformation forward. Its biggest investor is Japan Bank of International Cooperation (JBIC), while it’s also backed by Japanese Honda and Omron, and a number of European investors including BaltCap and Swedbank pension funds.

“Thousands of kilometres apart, Japan and Europe have much in common. Both have company-building legacies, an appetite for innovation, and understanding of the need to take care of the planet,” said Tomosaku Sohara, Managing Partner at the VC.

“NordicNinja is a bridge that turns these shared interests into common goals, bringing two of the world’s biggest ecosystems together for the benefit of us all.”

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Tech companies spend €113M per year on lobbying EU policies

Ecosystems, Government and policy / /

Tech companies spend over €113mn per year on lobbying the EU’s decision-making policies, a new study by the Corporate Europe Organisation (CEO) has found.

Alarmingly, the tech industry’s lobbying power has also increased by 16.5% over the past couple of years — from €97mn in 2021 to €113mn in 2023.

Overall, a total of 651 companies are attempting to influence the bloc’s digital economy. Among them, big tech is (rather expectedly) dominating the efforts, digging deeper into its pockets more than ever before.

Specifically, Meta is at the top of the list, having increased its budget from €5.75mn in 2021 to €8mn in 2023. In second place, Apple has doubled its lobbying investment from €3.5mn to €7mn. Google comes fourth with €5.5mn, and Microsoft sixth with €5mn. (Bayer and Shell occupy the third and fifth place, respectively.)

Meta also ranks first in the number of lobbyists with 17.05 full-time equivalents (FTEs). Google, Amazon, and Apple employ on average three more FTEs than they did in 2021.

Big tech’s dominance persists despite a slight rise in the number of companies spending for lobbying. The top 10 corporations on the list (which also include Amazon and Qualcomm) account for over a third of the sector’s total spending, reaching €40mn.

In contrast, 75% of companies spend less than €200,000, and 25% even less than €5,000 euros.

Notably, US-based companies represent about 20% of the lobbying efforts. European countries, including the UK, France, and Germany, follow with an average of 10% each. Meanwhile, Chinese giants, such as TikTok and Alibaba, account for less than 1%.

According to the CEO, big tech’s increasing push to influence EU policy in its favour is strongly related to the bloc’s recent and impending sweeping regulations — and it’s not hard to see why.

The newly enforced Digital Services Act (DSA) and Digital Markets Act (DMA) have directly taken aim at tech giants, designed to curb a number of the essential aspects of their business model, including content moderation, targeted advertising, and monopolising, anti-competition practices.

At the same time, the upcoming AI Act is expected to present yet another woe for tech companies that will have to build and deploy their artificial intelligence systems based on strict rules — especially when it comes to the (highly profitable) general purpose AI.

While it seems that big tech has lost the DSA and DMA battles, it still has some time to spend a million or two before the AI Act comes into force.

Tech companies spend €113M per year on lobbying EU policies Read More »

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EU has ‘no chance’ of semiconductor independence — but neither does anyone else

Corporates and innovation, Ecosystems, Government and policy, Investors and funding, Next Featured / /

Our world runs on semiconductors. The slivers of silicon provide electronic brains to phones, computers, cars, data centres, and stock markets. They’re also the digital backbone of modern militaries. 

Some of the first chips ever made were used in missile guidance systems. Today, they power countless military devices, from fighter jets and howitzers to radios and radar.

In the Russian-Ukraine war, chips power HIMARS rocket launchers, Javelin anti-tank missiles, and the Starlink communications satellites. They’re also integral to the arms race underway in East Asia, where territorial disputes in the East and South China Seas risk spiralling into a major conflict. The rise of artificial intelligence adds another dimension to the tensions: there’s now a dearth of AI chips.

In the EU, the shortages and frictions have led the bloc to introduce the €43bn Chips Act. The investment package aims to boost local production and reduce international dependencies. Experts, however, have downplayed any prospects of sovereignty.

According to Chris Miller, the author of Chip War, the EU has “no chance” of semiconductor independence — and neither does anybody else.

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The problem, he argues, is that the supply chain is simply too globalised and interconnected.

“Independence is hopeless,” Miller, an economic historian, told TNW at the IFA Berlin tech show. “It’s not going to happen — nor do I think Europe is pushing for it.”

A divided industry

In Chip War, Miller recounts the decades-long battle to control semiconductors, which today centres on the rivalry between the US and China. Tensions between the nations have torn the chip world into two.

As the fractures widen, Beijing is trying to bolster self-sufficiency in semiconductors.  It’s currently the world’s largest importer of the devices, spending more money importing them than it does on oil.

A portrait photo of Chris Miller, the author of Chip War
Miller is currently a history professor at Tufts University and a visiting fellow at the American Enterprise Institute. Credit: Chris Miller

To constrain China’s ambitions, Washington has imposed sweeping export controls on chip tech. In 2022, the Biden administration imposed its toughest sanctions yet. Under the new rules, the White House could block not only sales of chips made in the US, but also chips that use American components or software.

The move has disrupted China’s trade with Taiwan, which produces over 60% of the world’s semiconductors — and over 90% of the most advanced ones.

Beijing has also encountered problems in the EU, which has its own chip powerhouse: ASML.

The Dutch company is the world’s leading manufacturer of high-end chipmaking equipment. Without its gear, Chinese firms will struggle to produce advanced chips.

That outcome could soon become a reality.

Europe’s chip future

Amid pressure from the US, the Netherlands began restricting exports of advanced chip manufacturing equipment on September 1.

The move has sparked fears that China will impose retaliatory restrictions. Miller, however, expects Beijing to proceed with caution. He notes that retaliation could backfire.

“China could cause disruptions in supply chains, but they could be just as impacted by the disruptions as the West is,” he said.

Nonetheless, the discord has amplified calls for autonomy.  In response, the EU has made plans to produce 20% of the world’s semiconductors — double its current share — by 2030.

It’s a target that Miller believes is “possible,” but only with strong support from the member states and companies.

A precedent for this approach has been set this year in Germany. After offers of enormous subsidies, both Intel and Taiwan’s TSMC have pledged to build chip factories in the country.

Ultimately, semiconductor independence may be impossible — but the EU already has some unique strengths. In machine tools and power semiconductors, for instance, the bloc is home to some of the world leaders.

“I think Europe should keep focusing on what it’s historically been very good at, which is investing in R&D-intensive manufacturing industries,” said Miller.

“The goal is to have profitable chip companies with technological leadership positions — and Europe has that.”

EU has ‘no chance’ of semiconductor independence — but neither does anyone else Read More »

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Meet the 10 deep tech startups in Intel Ignite’s first UK accelerator

Deep tech, Ecosystems, Investors and funding, Startups and technology / /

Intel Ignite, Intel’s accelerator for early-stage deep tech startups, has unveiled the 10 companies that will comprise its newly-launched London cohort — the first one in the UK.

Starting on September 12, the selected startups will take part in a 12-week programme, during which founders will receive mentorship and guidance on their growth journey. This will include areas such as product development, technology, marketing and sales, fundraising, and go-to-market strategies.

The programme will also focus on co-founder dynamics, founders’ mental health, and diversity and inclusion practices.

Meanwhile, the finalists (selected from a total of over 200 applicants) will have access to a funding pool of $7.6mn (€7.1mn), provided by external investors. The startups themselves will pay no participation fees.

The 10 companies represent multiple sectors of deep tech, ranging from generative AI, machine learning, and next-gen computing to robotics and manufacturing.

Here’s the full list:

  • Apoha: sensory intelligence to anchor machines into physical reality.
  • Circuit Mind: electronics design assistant for engineering teams.
  • Crypto Quantique: chip-to-cloud system to manage and secure IoT devices in a single platform.
  • Fianchetto: light-speed photonic processors for faster and more sustainable computing.
  • Ivy: unifying all AI frameworks, hardware, and infrastructure with one line of code.
  • LGN: edge AI management software for businesses.
  • Lumai: scalable and ultra fast 3D optical interference processor.
  • Skippr: AI-generated product design.
  • Vaultree: fully-functional data-in-use encryption.
  • VyperCore: acceleration and protection of computer-intensive applications via novel microprocessor design.

“With these pioneering startups, Intel Ignite is thrilled to be launching the first cohort in London, which is home to the third-largest market in the world of startups and the number one market outside of the U.S.,” said Tzahi Weisfeld, Intel’s VP and general manager of Intel Ignite.

Intel Ignite was launched in 2019 and counts three more hubs across the globe: Munich, Boston, and Tel-Aviv. So far, a total of 148 companies have participated in its accelerator programmes, having raised a total of $1.7bn (€1.6bn) in funding.

Deep tech startups interested in participating in the next London cohort can submit their application at the Intel Ignite website.

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UK rejoins EU’s Horizon flagship research programme

Ecosystems, Government and policy, Next Featured, Startups and technology / /

After months of negotiations, the UK is rejoining Horizon, the EU’s €95.5bn flagship research and innovation programme, prime minister Rishi Sunak announced Thursday.

Although the country’s participation in the programme was part of the Brexit deal, its membership had been blocked for three years following Brussels’ and London’s feud over the trade rules for Northern Ireland — the UK’s only land border with an EU member state, the Republic of Ireland.

But the issue’s resolution in February has now opened the way for the UK’s re-entry into Horizon, which was confirmed on Wednesday, September 6, during a call between Sunak and Commission President Ursula Von der Leyen.

“We have worked with our EU partners to make sure that this is the right deal for the UK, unlocking unparalleled research opportunities, and also the right deal for British taxpayers,” Sunak said.

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Under the new deal, UK researchers can start applying for grants and bid to take part in Horizon projects, with their full access starting in January 2024. The agreement also includes participation in Copernicus, the European Earth observation satellite programme.

The EUhas also accepted the UK’s demand to opt out of Euratom, Europe’s atomic energy programme, and instead pursue a domestic fusion energy strategy.A

“The EU and UK are key strategic partners, and today’s agreement proves that point.

London will have to contribute €2.6bn on average per year for its participation to both Horizon and Copernicus, but it won’t have to pay for the time of its absence.

The news was welcomed with joy and relief by the UK’s scientific community, which has been long campaigning for regaining access.

Professor Dame Sally Mapstone, president of Universities UK, highlighted the importance of scientific collaboration beyond borders. “Horizon Europe [and its predecessors have] been the basis of scientific collaboration for over 30 years,” she said.

“From early detection of ovarian cancer to developing clean energy networks involving dozens of universities and many industrial partners, Horizon lets us do things that would not be possible without that scale of collaboration.”

Similarly, Dr Diana Beech, CEO at London Higher, noted that universities “now have the certainty and stability needed to continue powering the engine of UK innovation and to build connectivity across the regions” as they seek to make the country “a global science superpower.”

Overall, the UK’s re-entry intro Horizon marks a pivotal moment not only for London and Brussels’ post-divorce relationship, but also for European innovation and scientific progress.

“The EU and UK are key strategic partners and allies, and today’s agreement proves that point,” said Von der Leyen. “We will continue to be at the forefront of global science and research.”

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Apple and Microsoft deny EU ‘gatekeeper’ status for iMessage and Bing

Corporates and innovation, Ecosystems, Government and policy, Insider / /

Apple and Microsoft are pressing the EU to omit iMessage and Bing, respectively, from a list of “gatekeepers” subject to new regulatory requirements. Their reasoning? The services, claim the companies, simply aren’t popular enough.

The dispute stems from the EU’s new Digital Markets Act, a landmark law designed to constrain the power of big tech. A key aim of the rules is to prevent digital giants from squashing smaller rivals by boxing users into closed services.

The targets of the policies are the so-called gatekeepers — companies that provide “core platform services” prone to unfair business practices, such as social networks or search engines.

To be designated as gatekeepers, businesses need either a market cap of at least €75bn or an annual turnover of €7.5bn. They must also provide certain services such as browsers, messengers or social media, which have at least 45 million monthly end users in the EU and 10,000 annual business users.

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Companies that meet the criteria will face various new obligations, such as making their services interoperate with competing apps. Violators risk fines of up to 20% of their global revenue.

The first list of these gatekeepers is due to be published on Wednesday. Brussels is still considering including Apple’s iMessage chat app and Microsoft’s Bing search engine, the Financial Times reports. The two tech giants contend that their services aren’t popular enough to justify inclusion.

Microsoft argues that Bing shouldn’t be subject to the same requirements as the much larger Google Search, the Financial Times said, citing two people with direct knowledge of the issue.

Supporters of the company note that Bing has a market share of just 3%. If Microsoft is forced to offer access to rival search engines, the outcome may merely boost Google’s existing search monopoly.

Apple, meanwhile, says that iMessage simply doesn’t have enough EU users to be classified as a gatekeeper. As a result, the company argues that the messenger shouldn’t face the same requirements as Meta’s WhatsApp.

The outcome of their lobbying may emerge this week. If the services are designated as gatekeepers, the companies will have six months to meet the obligations.

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