Losses widen at Pragmatic Semiconductor as chip maker ramps up investment
Losses widened at Pragmatic Semiconductor, the company set to become the UK’s largest chip manufacturer by volume, during 2023 as it ramped up its investment plans.
The Cambridge-based manufacturer has posted pre-tax losses of £37m for the year after also losing £22.8m in 2022.
According to newly-filed accounts with Companies House, the firm’s revenue rose from £1.5m to £1.7m over the same period.
The results come after Pragmatic Semiconductor, which is backed by the likes of Investors include M&G Catalyst and the UK Infrastructure Bank, announced a series D equity raise of £182m in December 2023.
The business said that its increased losses reflect a rise in its investment plans.
Based in the North East of England, the company is using the investment to increase the speed of its production and create new manufacturing lines in its Durham site, one of which opened in March.
Pragmatic Semiconductor said that its directors are “satisfied with the progress of the company against [its] key performance indicators, reflecting tangible and quantified potential for revenue growth and a suitable financial position against which to execute its growth plans”.
During the year the average number of people employed by Pragmatic Semiconductor jumped from 173 to 240.
A statement signed off by the board said: “The directors are pleased to have made significant progress with continued innovation in the commercialisation of the company’s proprietary semiconductor technology and manufacturing processes during 2023.
“The company’s proven breakthrough technology delivers thin and flexible integrated circuits at a significantly lower production cost and lower carbon footprint than comparable silicon chips.”
It added: “Semiconductors underpin digital transformation solutions that are being accelerated by pervasive AI across industry sectors with many of the most exciting opportunities depending on the digitisation of everyday physical objects.
“Pragmatic’s unique, low-cost technology unlocks significant opportunities to deliver item-level intelligence in fast-growing applications that connect, control, sense and compute in the consumer, industrial and healthcare segments and beyond.”