Nexstrom Secures Funding to Scale 2D Semiconductor Manufacturing for Chip Fabs

Singapore-based startup Nexstrom has secured an additional $12 million in seed funding as it works to bring two-dimensional (2D) semiconductors into mainstream chip manufacturing. The company, which was incubated by Xora Innovation, aims to provide foundries with the equipment and processes necessary to grow extremely thin transition-metal dichalcogenides (TMDs) directly on standard 300mm (12-inch) silicon wafers.

For decades, the semiconductor industry has relied on shrinking silicon transistors to boost performance. However, as these components approach atomic scales, engineers face increasing challenges with electron control, leading to issues like power leakage, heat generation, and energy loss. Nexstrom believes that replacing traditional silicon with TMDs—a class of materials only a few atomic layers thick—offers a viable path forward, particularly as global demand from data centers exacerbates component shortages.

Although TMDs are often grouped with “2D materials” due to their extreme thinness, they are distinct enough to require specialized manufacturing techniques. The startup’s flagship product, named North Star, is engineered to address the critical gap between laboratory-scale prototypes and industrial mass production.

“In the lab, people can get very small, high-quality materials, but only on a very small scale,” said Lance Li, Nexstrom’s co-founder and chief scientist. “This is exactly the gap Nexstrom is addressing.” Li brings extensive experience to the venture, having previously led post-silicon electronics research at TSMC and worked on 2D materials since 2012.

The broader industry is already taking notice. Tech giants such as TSMC, Intel, and Belgium’s IMEC research institute are independently developing methods to integrate 2D materials into transistors. Recently, TSMC, ASML, and IMEC demonstrated a 300mm integration process for 2D-material transistors. Other players, including AIXTRON and CDimension, are also tackling various segments of the manufacturing chain.

Unlike these competitors, Nexstrom does not intend to manufacture chips itself. Instead, the company plans to license its technology or partner directly with major foundries like Samsung, TSMC, and Intel. According to CEO Phoebe Tan, several unnamed industry players are already testing samples of Nexstrom’s wafers and materials.

Tan emphasized that the company’s immediate focus remains on meeting the specific material quality standards required by industry partners. Using its newly installed 12-inch system, Nexstrom has successfully scaled its process from 2-inch to 6-inch wafers. The company projects it will complete its transition to 8-inch wafers by the end of October.

The latest $12 million injection brings Nexstrom’s total funding to $15 million, with investment contributions from Xora and Foothill Ventures, alongside support from SEEDS. The capital will be directed toward refining process control and measurement capabilities, expanding the technical team, and supporting qualification programs with prospective customers.

Nexstrom anticipates that its equipment will reach commercial production readiness between 2030 and 2035, positioning the company as a key enabler in the next generation of semiconductor miniaturization.