A Richmond-based startup specializing in semiconductor development has raised $18.5 million in an angel round.
Emtar Technologies Inc. revealed on Feb. 21 that the capital raise came last year, allowing it to expand its research and development capabilities since then.
Starting operations in 2023, Emtar develops system-on-chip (SoC) technologies and semiconductors.
CEO Alvis Huang said in the announcement the company has made significant technological advancements with the help of investors amid an undergoing shift in the industry.
BIV reached out to Emtar but the company declined to comment.
For Vidya Vankayala, director of BCIT’s Smart Microgrid Applied Research Team, the global shortage of semiconductors has experienced some relief, but demand still remains high.
“We need more investment – Emtar, and the other companies stepping in and scaling up. That's the right thing. That's a good thing,” he told BIV.
A shortage of semiconductors rattled supply chains across the globe in 2021.
Vankayala said the shortage was caused by numerous factors, including restrictions on trade, geopolitical situations and competition for raw materials.
He said the shortage was exacerbated by increased demand for semiconductors, as the need for electronics and automated cars surged.
“There is pressure both on the supply and demand side,” he said. “Is it over? Not yet, at least from the demand point of view – there is no sign of relief.”
Vankayala said more devices are being built and the use of electronics is increasing in pretty much every sector.
“It's a matter of, can supply catch up with increased demand?” he said.
Vankayala is hopeful that within five to 10 years, the semiconductor industry will be able to meet production demands.
