SCI Semiconductor, the Sheffield company that has developed the “world’s first memory-safe computer chip,” has raised £5m to accelerate production in response to “overwhelming demand.”
The heavily oversubscribed round was led by two Northern Powerhouse Investment Fund II (NPIF II) fund managers, PXN Ventures and Mercia Ventures, which are responsible for NPIF II – PXN Equity Finance and NPIF II – Mercia Equity Finance respectively. It also included investment from specialist cyber security seed investor Osney Capital, US-based Black Opal Ventures and private investors. The latest round follows a £2.5m investment led by NPIF II and Mercia Ventures a year ago.
SCI Semiconductor has already fabricated its first devices and has secured orders to the value of over £2m. It has also won government contracts totalling £7.7m and agreed partnerships with Google Research and Microsoft.
Memory safety is the key factor in around 70% of cyber attacks. Traditional software allows memory to be freely accessed, providing flexibility for developers but creating vulnerabilities that can be exploited by hackers. It also means coding flaws can bring down an entire system, as in the 2024 CrowdStrike outages.
With SCI’s solution, security is embedded in the computer architecture. It divides memory into trusted compartments and tightly controls how it is accessed. SCI’s ICENI range are the first chips to be based on CHERI technology, a government-backed framework for ‘memory-safe’ technology, and the company has been appointed as a core supplier in the UK government’s Accelerated CHERI Adoption Programme.
The launch comes amidst fears that AI tools such as Mythos which can reveal deep flaws in computer systems could pave the way for a new wave of cyber attacks, with critical infrastructure, defence and medical sectors particularly at risk.
The UK’s National Cyber Security Centre (NCSC) has warned that software patching alone might not provide enough protection and is urging companies to adopt memory-safe technology. SCI’s chip will also enable users to meet many of the reporting requirements for the European Cyber Resilience Act (CRA) which comes into force in September.
SCI Semiconductor was founded in 2022 by industry veteran Haydn Povey, Silicon Valley executive Krishna Anne, and leading Microsoft Research specialist Dr David Chisnall, who were joined by academics from the Universities of Cambridge and Manchester. The company currently employs 35 staff at its headquarters in Sheffield and a second office in Cambridge, and plans to create another 15 jobs in the next year.
SCI’s semiconductors are designed and packaged in the UK, with the fabrication process carried out in Germany.
CEO Povey 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.”
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.”
Paul Wilkes, partner at cyber security investment specialist Osney, asaid: “SCI Semiconductor is the exactly the type of UK company Osney Capital seeks to support: world-leading technologists tackling global cyber security problems with commercial energy, focussed on execution. Memory safety is a genuinely massive opportunity and we are delighted to be working with Haydn and the broader team.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
