Nexstrom's Vision: Bringing 2D Semiconductors to the Masses

When Silicon Can't Shrink Anymore

For decades, the semiconductor industry has relied on shrinking silicon transistors to boost performance and packing density. But as we approach the physical limits of silicon, a new frontier is emerging. Enter two-dimensional (2D) materials—ultra-thin semiconductors that could be the key to continued progress in chip design.

The Next Generation of Chips

In this article, I'll examine how Nexstrom, a Singapore-based startup incubated by Xora Innovation, is working to bridge the gap between laboratory success and commercial production. Their focus on transition-metal dichalcogenides (TMDs)—a class of 2D materials—is particularly promising as the industry grapples with global component shortages driven by data center demand.

"In the lab, people can get very small, high-quality materials, but only on a very small scale," said Lance Li, Nexstrom's co-founder and chief scientist, who previously led research on post-silicon electronics at TSMC.

Nexstrom's North Star Technology

Nexstrom's approach centers around its equipment called North Star, designed to grow TMDs directly on 300mm (12-inch) wafers used in commercial chipmaking. This marks a significant step forward from lab-scale demonstrations, which typically involve much smaller substrates.

The company's technology is built on research conducted by Li, who has been working with 2D materials since 2012. His expertise at TSMC provided crucial insights into scaling up manufacturing processes—a challenge that many startups in the field struggle to overcome.

A Strategic Partnership Model

Unlike traditional semiconductor companies, Nexstrom isn't aiming to compete directly with giants like TSMC, Samsung, or Intel. Instead, they plan to partner with these industry leaders, providing them with the tools and materials necessary for integrating 2D semiconductors into their production lines.

The startup has already begun testing its wafers and materials with several industry partners, though it has chosen not to disclose their identities. According to Nexstrom's CEO Phoebe Tan, they've systematically scaled from 2-inch to 6-inch wafer sizes and plan to reach 8-inch wafers by the end of October.

Funding the Future

With a recent $12 million seed round from investors including Xora, Foothill Ventures, and SEEDS, Nexstrom has now raised a total of $15 million. The funds will be used to further develop its technology, improve process control and measurement capabilities, expand the team, and support qualification programs with potential customers.

The company estimates that its equipment will be ready for commercial production between 2030 and 2035—a timeline that aligns with the industry's long-term needs as we continue to push the boundaries of what chips can do.

Why This Matters

The potential benefits of 2D semiconductors are substantial. They're inherently thinner, which means they can be used in applications where space is at a premium—such as mobile devices or wearable technology. Additionally, because they don't suffer from the same leakage issues as silicon-based transistors, they could offer improved power efficiency and heat dissipation.

This isn't just about theoretical performance gains either. As we face increasing demands for computing power in data centers and AI systems, having more efficient, compact components becomes critical. Nexstrom's work is part of a broader industry effort to find ways to keep pushing performance limits without relying solely on silicon scaling.

Competitive Landscape

Nexstrom isn't alone in this pursuit. Major players like TSMC, Intel, and Belgium's IMEC are all developing strategies to incorporate 2D materials into transistors. Equipment and materials companies such as AIXTRON, CDimension, and other startups are also contributing parts of the manufacturing chain.

Recently, TSMC, ASML, and IMEC demonstrated how 2D-material transistors could be integrated into a 300mm process—a significant milestone that shows the industry is taking this seriously. But Nexstrom's unique focus on large-scale production tools sets it apart from many of its peers.

The Road Ahead

While challenges remain, particularly around achieving consistent quality across full-size wafers, Nexstrom's progress signals a real shift in how we think about semiconductor manufacturing. Their approach emphasizes not just innovation but also practical implementation—a crucial distinction in an industry where breakthroughs often fail to translate into real-world products.

As the demand for faster, more efficient chips continues to grow, startups like Nexstrom play a vital role in ensuring that we don't run out of options when it comes to advancing technology. The next few years will be crucial in determining whether 2D semiconductors can truly make the leap from laboratory curiosity to mainstream necessity.

With continued investment and collaboration, we may see a new generation of chips that push performance even further than today's silicon-based designs. For now, Nexstrom is laying the groundwork for that future—one wafer at a time.