With EU backing, QuantumDiamonds aims to speed up chip manufacturing

The competition to accelerate chip production is intensifying, and Europe is stepping up its game. ASML, a Dutch firm with a dominant position in the chip-making machinery sector, may soon find itself among peers rather than alone in the spotlight. The European Chips Act aims to bolster the semiconductor industry through state-backed funding, and QuantumDiamonds, a German startup, is one of the key beneficiaries. Recently, the European Commission approved a substantial €76 million in non-dilutive funding, courtesy of Germany’s federal economy ministry and the state of Bavaria. This investment will facilitate the establishment of a new facility in Munich dedicated to producing semiconductor testing equipment, as part of QuantumDiamonds' broader $178 million investment strategy. The company, which originated as a spinout from the Technical University of Munich (TUM), also secured a €15 million equity round led by the venture capital firm World Fund, alongside contributions from Bayern Kapital and existing investors such as Creator Fund and Earlybird. CEO Kevin Berghoff noted that raising this round was a swift process, thanks to strong customer interest. "We collaborate with nearly every player in the chip ecosystem," he said. With escalating demand for various types of chips, the need for efficient manufacturing processes has never been greater. QuantumDiamonds claims to significantly expedite defect detection, reducing a process that typically takes weeks to just two minutes, without halting production lines. This innovation could help major manufacturers like Taiwan-based Foundries and Korean Memory Makers save vast sums of money, with Berghoff estimating that their systems can pay for themselves within months. The startup's approach leverages quantum technology to detect defects with remarkable precision, though Berghoff humorously remarked that customers are primarily focused on results rather than the underlying tech. QuantumDiamonds utilizes synthetic diamonds to monitor electrical flow through chips, allowing for the identification of flaws across multiple layers without damaging the components, a crucial capability as chips become increasingly complex. As the industry shifts towards multi-layered designs, with startups like Semron pioneering 3D chips, QuantumDiamonds finds itself at the forefront of a technological evolution. Berghoff emphasized that while larger inspection firms may eventually adapt, QuantumDiamonds currently enjoys a first-mover advantage in this niche market. The startup's ambitions extend beyond laboratory settings; it aims to transition from sample-based testing to full-scale quality control in semiconductor manufacturing plants. Although the equipment is pricey, with lab tools costing in the single-digit millions and high-throughput systems potentially reaching $10 to $15 million, it remains far less expensive than ASML's machines, which can exceed $400 million. World Fund managing partner Daria Saharova expressed optimism, suggesting that QuantumDiamonds could emerge as Europe’s next ASML. However, Berghoff candidly acknowledged that other companies, including ASML, may eventually eye acquisitions, even as ASML has recently shown reluctance toward mergers and acquisitions. Currently, QuantumDiamonds is in a pivotal phase of growth, having recently opened a regional hub in Taiwan and made its first commercial installations in both Taiwan and the U.S. A significant portion of its workforce, which comprises 70 employees, is based in Munich, where Berghoff and co-founder Fleming Bruckmaier plan to double their engineering team in the next year, capitalizing on the region's affordable talent pool in quantum and semiconductor fields. "We have what we need here to ship overseas," Berghoff concluded.