In search of new chip startup funding models

Dylan McGrath, EETimes
12/6/2011 8:09 PM EST

We've heard it so many times, by now it sounds like a broken record: venture capitalists, long the lifeblood nurturing a thriving community of semiconductor startups, have all but abandoned the chip industry, turning instead to social media and green energy technologies, where the common wisdom is a smaller investment can go a lot further.

We've heard many times, too, that its hard to blame them. The fact of the matter is that bringing a chip to market, even for a fabless company, has become an ultra-expensive proposition requiring on the order of $30 million or more. And we've also heard plenty about what a dangerous situation this is for the semiconductor industry, which has practically since it began depended on the innovation brought by small start ups to thrive.

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