Nexstrom Targets 2D Semiconductors for Singapore Chip Fabs

Semiconductor innovation is shifting away from the traditional race to shrink silicon transistors, a strategy that has long been plagued by issues like electron leakage, power loss, and excessive heat. Nexstrom, a startup incubated by Xora Innovation, believes the solution lies in adopting two-dimensional (2D) materials. These ultra-thin substances, specifically transition-metal dichalcogenides (TMDs), offer a pathway to faster, more efficient chips without the physical limitations of shrinking silicon. As global demand for data center components continues to strain supply chains, Nexstrom aims to provide foundries with the equipment needed to manufacture these advanced semiconductors directly on standard chip wafers.

While TMDs are not strictly two-dimensional in a geometric sense, they consist of only a few atomic layers thick, placing them within the broader family of 2D materials prized for their potential to enable further miniaturization. Nexstrom’s flagship product, North Star, is engineered to grow TMDs directly onto 300mm (12-inch) wafers, which are the industry standard for commercial chip production. This approach aligns with efforts by major players such as TSMC, Intel, and Belgium’s IMEC, all of whom are exploring ways to integrate 2D materials into transistor architectures. Equipment suppliers like AIXTRON and CDimension, along with various startups, are also contributing to this emerging manufacturing ecosystem.

The challenge Nexstrom addresses is unique: moving beyond laboratory-scale successes to industrial viability. Co-founder and chief scientist Lance Li, who previously led post-silicon electronics research at TSMC, has studied 2D materials since 2012. He highlights the disconnect between academic research and industrial application. “In the lab, people can get very small, high-quality materials, but only on a very small scale,” Li told TechCrunch. “This is exactly the gap Nexstrom is addressing.” By focusing on scalable production, the company seeks to bridge this divide rather than compete directly with established chipmakers.

To accelerate its development, Nexstrom announced a $12 million seed round led by investors including Xora and Foothill Ventures, bringing its total funding to $15 million. The capital will support process control improvements, team expansion, and qualification programs with potential customers. Rather than becoming a manufacturer itself, Nexstrom intends to license its technology or partner with industry giants like Samsung and Intel. Early interest is evident, with unnamed companies already testing samples of Nexstrom’s wafers. However, consistent growth of TMDs across full-size wafers remains a significant technical hurdle that the company must overcome.

CEO Phoebe Tan emphasized that the current priority is meeting specific material quality standards set by industry partners. “At the current stage, our work is focused on delivering material quality that [industry partners] have specified,” Tan told TechCrunch. “We have proven material results on wafers using our 12-inch system that has just been installed. We have systematically scaled from 2 inches to 6 inches, and we are going to complete our 8 inch and 8 inch by the end of October.” This systematic scaling demonstrates progress toward the ultimate goal of commercial readiness.

Looking ahead, Nexstrom projects that its equipment will be ready for commercial production between 2030 and 2035. This timeline reflects the rigorous validation processes required for new semiconductor technologies to enter mainstream manufacturing. As the industry grapples with the limits of silicon, partnerships between innovative startups and established foundries may become crucial for sustaining Moore’s Law. Nexstrom’s focus on scalable, wafer-compatible solutions positions it as a key enabler in this next phase of electronic device evolution.