It’s no surprise to see that funding for US semiconductor startups has reached record levels in 2025.
After all, this is the year Nvidia has cemented its status as the most valuable technology company, with a staggering market capitalization of $4.6 trillion. Public valuations of semiconductor companies have also reached an all-time high, with sector funds like VanEck Semiconductor ETF reaching unprecedented heights.
The big trend: These gains obviously coincided with record investment to AI companies hungry for faster, cheaper, more energy-efficient processing power. And startups offering an edge in this area were juicy targets for acquirers, as evidenced by Nvidia’s recent deal to acquire the AI inference chip developer’s assets. Groq in a transaction that would have estimated to 20 billion dollars.
All of this is to say that while funding for U.S. semiconductor startups is higher than ever, the numbers actually seem somewhat modest given the value investors place on the industry’s biggest innovators.
The numbers: How modest? Across all stages, equity funding for U.S. semiconductor-related startups totaled $6.2 billion in 2025, according to Crunchbase data. This represents an 85% year-over-year gain, and also the highest annual figure on record.
For perspective, we have presented the total number of investments and transactions over the past six calendar years below.
Globally, investments in semiconductor startups also increased year-over-year in 2025, totaling approximately $12.2 billion. This represents a gradual increase from 2024, but not a record level.
In the global and U.S. charts, the number of reported semiconductor funding rounds increased year-over-year, but remained below record levels.
We do not pretend that these are small investments. However, compared to the amounts of money circulating in the industry, this seems relatively paltry. The $20 billion deal for Groq, for example, is one of the largest M&A deals in startup history. Yet the cost represents only 0.4% of Nvidia’s valuation.
Remarkable rounds
At the same time, among venture capitalists in the semiconductor sector, capital was highly concentrated, indicating that a handful of winners will generate returns. The three largest fundraising rounds accounted for almost half of US startup funding. In all cases, these were subsequent financings intended for already well-known unicorns.
AI chip company Brain systems was the largest fundraiser, locking in $1.1 billion in a September Series G. Shortly after, the Silicon Valley company officially withdrew its IPO plan. While Cerebras would be I plan to file again for a public offering, there should be enough liquidity to continue to scale for the foreseeable future.
PsiQuantuma quantum computing company that is developing a quantum photonic chipset, was another investor favorite. The 10-year-old company, based in Palo Alto, California, obtained $1 billion in a September Series Ebringing total funding to date to at least $2.3 billion, per Crunchbase data.
Groq landed the third biggest round — a $750 million Series Ealso in September. This has been a quick turnaround for investors, who will see an enviable return from Nvidia.
For an overview, we’ve put together a list of the 10 biggest beneficiaries of the 2025 semiconductor funding round below.
Outings and more
Venture capitalists have also seen significant outflows from semiconductor-related investments. And it wasn’t just Groq that generated the gains.
In March, SoftBank announced agreement to acquire silicon design company Computer amp in a cash deal valued at $6.5 billion. In another multi-billion dollar result, data infrastructure provider Marvell Technology announcement in December he buys Celestial AIa developer of optical interconnect technology for AI computing systems, in a $3.25 billion deal.
Also in December, Qualcomm picked up Ventana Microsystemsa developer of high-performance processors, for an undisclosed amount. And on the acquisition front, AMD recruited this summer the team of Detach the AIa startup that developed AI inference chips. Untether AI subsequently shut down.
IPOs in sight?
Given the ultra-deep pockets of potential acquirers, the urgency to meet demand amid rapid AI development, and the penalties for delay or failure to adapt to the technological needs of today’s largest clients, it seems reasonable to expect the pace of transactions and exits to maintain or even increase over the coming quarters.
Who knows? In 2026, we could even see the semiconductor sector achieve significant IPOs.
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Illustration: Dom Guzman
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