Fab2

Semiconductors · Hardware · Manufacturing

Funding

Fab2 raises $500M Series A at $3.7B valuation to mass-produce chip fabs

Building semiconductor fabs in-house could slash the billion-dollar, years-long cost that keeps chipmaking limited to a handful of giants.

• Fab2 closed a $500 million Series A led by Fundomo, valuing the company at $3.7 billion, to scale production of its self-built "fab fab" chip factories.
• Fab2, formerly Atomic Semi, was founded in 2022 by Sam Zeloof, who built chips in his family garage as a teenager, and veteran chip architect Jim Keller.
• The company designs and builds every piece of fab equipment itself — pumps, valves, gas lines, lithography tools — then mass-produces small fabs assembled from that hardware, a model it calls a "fab fab."
• Fab2 runs a roughly 120,000-square-foot chip fab in Austin, a 30,000-square-foot "fab fab" in nearby Lockhart, and its original 25,000-square-foot garage fab in San Francisco.
• Samsung's competing Taylor, Texas foundry has absorbed $37 billion in investment since 2022 and is only now nearing mass production, underscoring the scale of the cost problem Fab2 says its modular approach can address.
• By industrializing the construction of fabs themselves rather than just designing chips, Fab2 is betting that the real bottleneck to reshoring semiconductor capacity is the factories, not the fabless firms.