Home / Business and Economy / Startup Etched Secures First TSMC Chip, Faces Production Hurdles
Startup Etched Secures First TSMC Chip, Faces Production Hurdles
3 Jul
Summary
- Etched's first chip manufactured by TSMC, shipping systems this summer.
- Copper Sky Capital aims to reshore Etched chip fabrication to Arizona.
- Copper Sky is raising a new $300 million fund for tech investments.
Startup Etched has successfully manufactured its first chip earlier this year with TSMC. The company, valued at $5 billion, plans to begin shipping systems powered by this chip to customers later this summer.
However, Etched faces significant challenges in scaling production. Like other chip designers, the four-year-old startup must secure limited manufacturing capacity at TSMC's Taiwan facilities.
Copper Sky Capital, an early investor in Etched, is exploring solutions to these manufacturing constraints. The VC firm hopes Etched will eventually establish chip fabrication at TSMC's upcoming Arizona facility.
Copper Sky's founder, Jack Selby, who secured Etched's participation by promising to facilitate chip reshoring to Arizona, founded the firm in 2021. His investment thesis centers on the region's potential for hardware startups.
Selby highlighted Etched's understanding of Copper Sky's connections to Arizona's semiconductor industry, particularly the local TSMC GIGAFAB. Copper Sky is also actively seeking investments in hardware companies, including those in the defense sector, that could establish manufacturing in Arizona.
The firm is currently raising a $300 million second fund, expanding its investment focus nationwide while maintaining a strong interest in domestic manufacturing opportunities.
