Chip materials startup Impact Nano raises $32M in funding from Goldman Sachs, Intel, and others

The semiconductor industry is facing significant supply chain issues as a few foreign producers are responsible for providing chips, solar cells, and battery materials. This leaves companies vulnerable to supply chain disruptions. That’s why Massachusetts-based chip materials startup Impact Nano is aiming to address this issue by establishing local manufacturing of crucial materials and decreasing reliance on foreign supply chains.

Today, Impact Nano announced it has raised $32 million in funding to expand the Massachusetts factory and workforce to accelerate materials development efforts. The round was backed by investors including Intel Capital and Goldman Sachs Asset Management.

Alongside the funding. Impact Nano also announced that Intel Capital’s managing director, Sean Doyle, will join its board of directors.

The ongoing conflict in Ukraine and geopolitical instability have brought to light critical vulnerabilities in the chemical supply chain of the chip industry that require attention. Ukraine is a significant neon gas supplier, a crucial material utilized in chip manufacturing.

“Impact Nano plays a critical role by manufacturing materials with precisely controlled chemical fingerprints, enabling atomic level control in advanced semiconductor fabrication,” said Matthew Stephens, CEO and Co-founder of Impact Nano. “We are excited to announce Goldman Sachs and Intel Capital’s investment towards our efforts to safely produce materials in the U.S., thereby addressing overseas supply chain challenges.”

Impact Nano is not only focusing on venture funding. Stephens also said that the company is looking to apply for funding through the CHIPS Act which supports the suppliers for semiconductor manufacturing.

“We are excited to team with Intel Capital to accelerate the growth of Impact Nano through the recent funding,” said Jeff Possick, a Managing Director in Goldman Sachs Asset Management. “The capital will help enable the Impact Nano team to capitalize on the increasingly high volume of business opportunities available in the current environment.”

Stephens explained that Impact Nano is developing innovative methods to manufacture chemicals used in the chip-making process. The company is prioritizing various areas, such as enhancing the purity of chemicals, sourcing raw materials that are more readily available and adhere to ethical standards, and implementing more eco-friendly manufacturing processes.

“Impact Nano is establishing a safety-first source for on-shore manufacturing of advanced materials in the U.S.,” said Sean Doyle, Managing Director, Intel Capital. “Impact Nano founders Matt Stephens and Mark Wilkinson are experienced leaders in the specialty chemical domain, and their expertise will enable Impact Nano to be a quality source of materials innovation and domestic supply for advanced materials.”

Founded in 2019, Impact Nano makes specialty chemicals for the semiconductor industry and others. The company is focused on addressing global challenges in computing, the energy transition, and health through green chemistry and circular manufacturing approaches. The advancement of these industries relies on crucial breakthroughs in advanced materials, and Impact Nano’s expertise and manufacturing capabilities allow them to scale up leading technologies and bring them to the market.

In addition, Impact Nano is also a tier 2 advanced materials supplier and development partner with specialization in ligand, fluorine, silicon, and organometallic chemistry.