SCI Semiconductor, a Sheffield headquartered technology company, has raised £5 million in an oversubscribed funding round to accelerate production of its memory-safe computer chips. The company has developed what it describes as the world's first memory-safe chip range based on CHERI technology. The investment will support new chip development in the UK and help meet early commercial demand worth more than £2 million.
Investor backing and funding purpose
The oversubscribed round was led by PXN Ventures and Mercia Ventures, two fund managers for the Northern Powerhouse Investment Fund II, and follows a £2.5 million investment last year. Osney Capital, US-based Black Opal Ventures and private investors also participated. SCI Semiconductor intends to use the capital to step up production and create around 15 new jobs over the next year.
A hardware response to memory safety
Memory safety flaws are a factor in about 70 per cent of cyberattacks. Traditional software gives developers broad access to memory, creating vulnerabilities that hackers can exploit and allowing coding flaws to crash entire systems. SCI Semiconductor embeds protection directly into chip architecture by dividing memory into trusted compartments and tightly controlling access.
The company's ICENI range is the first to be based on CHERI technology, a government backed framework for memory safe computing. SCI has been appointed a core supplier in the UK government's Accelerated CHERI Adoption Programme. The programme is designed to promote wider adoption of hardware security in systems that currently rely on software patches.
The technology is gaining attention as AI tools reveal critical flaws and raise concerns about the security of AI generated code. These tools can expose deep vulnerabilities in computer systems, particularly in critical infrastructure, defence and medical sectors. SCI Semiconductor argues that hardware level protection is becoming essential as AI increases both the scale and sophistication of cyber threats.
Commercial traction and company growth
Founded in 2022 by industry veteran Haydn Povey, Silicon Valley executive Krishna Anne and Microsoft Research specialist Dr David Chisnall, alongside academics from Cambridge and Manchester, SCI Semiconductor has already fabricated its first devices and secured orders worth over £2 million. It has won government contracts totalling £7.7 million and agreed strategic partnerships with Google Research and Microsoft. Its semiconductors are designed and packaged in the UK, with fabrication carried out in Germany.
The company currently employs 35 staff across its Sheffield headquarters and Cambridge office and plans to create another 15 jobs within the next year. Chief Executive Officer Haydn Povey said the problem of memory safety is finally being taken seriously. He added that memory safe technology can help overcome vulnerabilities in critical systems and that the funding will support the development of a new generation of chips in the UK.
Investor confidence and national support
Will Schaffer, Investment Director at Mercia Ventures, said SCI Semiconductor brings together leading minds and has developed an elegant solution to a trillion dollar problem. Dr Elizabeth Young, Investment Manager at PXN Ventures, said the team is addressing rising threats to critical infrastructure with hardware level cybersecurity. Sarah Newbould from British Business Bank added that the investment demonstrates how NPIF II helps scale innovative high growth businesses.
The £5 million investment positions SCI Semiconductor to scale its production capacity and deepen its role in the UK's hardware security ecosystem. With established partnerships, government contracts and early commercial orders, the company is moving from research leadership to commercial delivery. Its progress reflects a broader shift toward preventing cyber vulnerabilities at the hardware level rather than relying on software fixes after attacks occur.