Pragmatic’s Losses Rise Despite Incremental Sales Growth

The journey of Pragmatic Semiconductor has been a rollercoaster ride, marked by losses for over a decade on sales revenue that finally crossed the £1 million mark in 2021. Despite the challenges, the company's innovative thin-film-transistor process for simple circuits caught the attention of investors, leading to a significant boost of £182 million in Series D equity funding by the end of 2023.

With the substantial funding injection, all eyes are now on 2024 as a pivotal year for the flexible circuit manufacturer. While the technology is based on thin-film transistor principles, Pragmatic's flexible IC technology leverages silicon wafers as substrates to ensure compatibility with traditional semiconductor manufacturing processes.

In the financial report for the fiscal year ending December 31, 2023, company directors expressed satisfaction with the "significant progress" made in commercializing their proprietary technology and manufacturing methods throughout the year.

Pragmatic Semiconductor currently operates two production lines. The first line focuses on manufacturing near field communications chips for smart labels and inlays, while the second facility, equipped to handle 300mm diameter substrates, is gearing up to offer foundry services with a rapid turnaround time of just four weeks from tape-out to delivery.

The 300mm wafer fab boasts the capacity to accommodate up to nine fabrication lines, each capable of churning out billions of chips annually. The company's 2023 financial statement highlights that engagements with smart label and inlay manufacturers cover a significant portion of the global market, with the smart label market size projected to witness substantial growth in the coming years.