ChipFlow PreSeed Bridge round 2024

• Large automotive customer ($29.0bn revenue, $2.2bn pretax profit)
  • Our Purchase Order discussion has evolved into a much bigger play than initially thought.
  • The design program would be 4.5 year program leading to a strategically important custom chip integral to all vehicles
  • We’ve been asked to assist in collaboration with IDMs to define IP ownership for the new model where OEM is cumulating its own hardware asset, directly validating ChipFlow market hypothesis.
  • We have been asked to engage and manage relationships with a new Indian Foundry player as part of the supply chain resiliency.
  • We expect to close the first PO in August.
• GlobalFoundries (GF) ($7.4bn revenue, $1.1bn pretax profit)
  • In our meeting this week, their European Automotive Sales team conveyed that they also see the OEM market moving towards our supported model where OEMs are cumulating hardware assets. Due to this, they have now started actively to seek possible joint customers that fit with our platform. We expect the first leads to come in Aug/Sep with closing still in 2024.
  • Beyond this, they pointed us to talk to our GF Executive Sponsor, Ziv Hammer about a wider, more strategic collaboration as GF sees the potential of ChipFlow platform to provide them with a significant number of new customers. This is again directly validating our earlier thesis of ChipFlow being a major enabler to Foundries.
• EU Chips Act
  • We met with the European Commission Policy Officer and selected European Open Source hardware leaders in Paris last week. It became very clear that ChipFlow is a clear leader in the space.
  • More importantly, we uncovered a significant opportunity for ChipFlow platform to become a part of key EU Chips Act project – [the Chips for Europe Initiative Design Platform](https://digital-strategy.ec.europa.eu/en/factpages/european-chips-act-chips-europe-initiative#:~:text=Design Platform The design platform proposed in the,Automation (EDA) tools%2C as well as support services.) - as the Open Source driven design flow driving new innovation and adoption. This would position ChipFlow again to the heart of the future of European Chip design.
  • We will participate, along with other European Open Source hardware leaders, to a process leading to input to the European Commission by October.
• Contract agreed with IHP (Publicly funded Semiconductor Research, €36m/y)
  • A contract of value €270k has been agreed with IHP Microelectronics for the development of a radiation-hardened SRAM generator as part of their EU & SwissChips driven Open Source process.

The above are all very significant opportunities as themselves for a semiconductor start up, let alone all 4 progressing at the same time! In addition to them, we will of course continue our other, more direct efforts to hunt for 1-2 further Proof-of-Concept projects to be closed this year. But with the above, we are seeing industry leaders moving the market to the direction where we already have a solution – we might be early, but with these data points we seem to be where the buck is firmly moving to.