Funding Round and Investors
Chip startup Vertical Semiconductor has reportedly raised $11 million in seed funding to accelerate development of its vertical gallium nitride transistors, according to recent reports. The funding round was led by Playground Global with participation from JIMCO Technology Ventures, Milemarker Capital, and Shin-Etsu Chemical, a major semiconductor materials supplier.
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Company Background and Technology
Founded in 2024 by Josh Perozek, Cynthia Liao, and MIT professor Tomas Palacios, Vertical Semiconductor emerged from research conducted at MIT’s Palacios Group, which sources indicate is a world-leading GaN research laboratory. The company focuses on developing vertical transistor architectures using gallium nitride, a wide-bandgap material that analysts suggest can handle significantly higher power levels than conventional silicon.
According to the company’s statements, their technology represents a “scalable transistor platform” that enables direct, high-efficiency power conversion. This approach could potentially address critical power delivery limitations in AI infrastructure, where recent cloud infrastructure challenges have highlighted system vulnerabilities.
Technical Advancements and Manufacturing
Vertical Semiconductor claims to have successfully demonstrated its technology on eight-inch wafers using standard silicon CMOS manufacturing methods, suggesting the approach is compatible with existing semiconductor production infrastructure. The report states the technology is ready for real-world deployment across voltage ranges from 100 volts to 1.2kV, positioning it to address various power conversion applications.
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The startup is currently developing a prototype and plans to begin early sampling of packaged devices by the end of 2025, with a fully integrated solution targeted for 2026. This timeline coincides with broader industry developments in power management and computing infrastructure.
Addressing AI Hardware Bottlenecks
“The pace of AI is not only limited by algorithms. The most significant bottleneck in AI hardware is how fast we can deliver power to the silicon,” CEO Cynthia Liao stated in the report. “We’re not just improving efficiency, we’re enabling the next wave of innovation by rewriting how electricity is delivered in data centers at scale.”
Analysts suggest that GaN technology could play a crucial role in overcoming power limitations that have constrained AI hardware performance, particularly as computational demands continue escalating. The development comes amid increasing focus on energy efficiency solutions across the technology sector.
Market Context and Future Outlook
The funding announcement arrives as the semiconductor industry increasingly explores wide-bandgap materials to overcome silicon’s physical limitations. Gallium nitride transistors are gaining traction in power electronics applications due to their superior efficiency, thermal performance, and power density compared to traditional silicon-based devices.
While Vertical Semiconductor focuses on data center applications, the underlying technology potentially has broader implications for various power electronics markets. The development represents one of several related innovations emerging from academic research laboratories and entering commercial development through startup ventures.
According to industry observers, successful commercialization of Vertical Semiconductor’s technology could significantly impact power conversion efficiency in critical computing infrastructure, potentially addressing one of the fundamental constraints in advancing artificial intelligence systems.
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