Secure chip developer lands £5 million backing

A Sheffield technology start-up has raised £5 million to accelerate production of an ultra-secure computer chip after securing more than £2 million of orders.

SCI Semiconductor says the heavily oversubscribed investment round will help it meet growing demand for its memory-safe technology, designed to tackle vulnerabilities exploited in cyber attacks.

The round was led by Northern Powerhouse Investment Fund II fund managers PXN Ventures and Mercia Ventures, alongside investment from Osney Capital, US-based Black Opal Ventures and private investors.

It follows a £2.5 million investment led by NPIF II and Mercia Ventures last year.

Founded in 2022, SCI has already fabricated its first devices, secured £7.7 million of Government contracts and agreed partnerships with Google Research and Microsoft.

Its ICENI range uses CHERI technology, a Government-backed framework designed to improve memory safety by embedding security within computer architecture and controlling how memory is accessed.

The company says memory safety issues are a factor in around 70 per cent of cyber attacks, with demand for stronger protection increasing as artificial intelligence creates new cybersecurity challenges.

SCI has also been appointed a core supplier to the UK Government’s Accelerated CHERI Adoption Programme.

The business was founded by industry veteran Haydn Povey, Silicon Valley executive Krishna Anne and Microsoft Research specialist Dr David Chisnall, alongside academics from the universities of Cambridge and Manchester.

Haydn said: “The problem of memory safety is finally being taken seriously. 

“As AI is identifying hundreds of critical vulnerabilities, it is clear that huge swathes of technology are open to attack. 

“Additionally, with so much code generated by AI, the question is how much of it is fit for purpose and what risk that could pose to systems.

“Memory safe technology helps overcome these challenges. 

“Since unveiling our ICENI chip earlier this year, demand has been overwhelming. 

“The funding will enable us to step up production and develop a new generation of chips here in the UK.”

SCI currently employs 35 people across its Sheffield headquarters and Cambridge office and plans to create another 15 jobs over the next year.

Its semiconductors are designed and packaged in the UK, with fabrication carried out in Germany.

Will Schaffer, investment director at Mercia Ventures, added: “SCI Semiconductor brings together some of the leading minds in the industry. 

“They have developed an elegant solution to a trillion-dollar problem – one that has so far eluded other players – and the business has quickly gained traction. 

“We are pleased to continue supporting them and look forward to seeing them go from strength to strength.”

Dr Elizabeth Young, investment manager at PXN Ventures, added: “We’re proud to be backing the SCI Semiconductor team, who are doing incredibly important work addressing rising threats to critical infrastructure and other key sectors with hardware-level cybersecurity, particularly as these threats become more sophisticated.”

The £660 million Northern Powerhouse Investment Fund II (NPIF II) fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, senior investment manager at the British Business Bank, added: “Through the Northern Powerhouse Investment Fund II, we are committed to improving access to finance for ambitious businesses across the North. 

“Supporting companies like SCI Semiconductor demonstrates how NPIF II is helping to scale innovative, high-growth businesses, supporting the UK’s Modern Industrial Strategy while strengthening key technology clusters in regions such as South Yorkshire.”

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