The firm is known for its low-cost chips which are thinner than a human hair
Disruptive chip maker Pragmatic Semiconductor says it is focussed on ramping up production at its new County Durham factory site, despite falling revenue and widening operating losses.
Bosses say the innovative firm will continue to bear losses until production and sales scale up. And the hunt for new equity funding – following a successful £179m series D raise – is under way with JP Morgan appointed to lead the effort.
Pragmatic has secured £36m of bridge financing from existing investors, in the form of convertible loan notes, to tide it over in the meantime. It comes as newly published accounts show Pragmatic saw revenues fall to £901,000 in 2025, down from £1.69m the year before, and incurred operating losses of £65.1m, up from £55.8m.
Writing in the accounts, Steve McCue – who was appointed as chief financial officer in March 2025 – acknowledged delays to the company’s plan but talked of the “deep complexity of developing an entirely new disruptive technology. He said directors were satisfied the company continues to make significant progress.
Pragmatic has developed a fast and sustainable way to develop ultra-thin and flexible chips that are underpinning the digital and AI-led transformation of the economy. In 2022 it chose Meadowfield Industrial Estate as the site for its multimillion-pound, job-creating Pragmatic Park production site, where the second high-volume production line for its chips has now been built and installed to triple its capacity.
In late 2023 the company completed its series D equity raise, co-led by technology investors M&G Catalyst and the UK Infrastructure Bank. At the time, that was said to be the largest European semiconductor venture raise ever.
Given its track record of attracting investment there are hopes the series E round will also deliver for Pragmatic, which has its eyes on an estimated $30bn market. The firm has pointed to initial opportunities in the near-field communications space, dealing with smart labels and inlays for global packaging companies and consumer brands.
Within the results document, Mr McCue wrote: “The directors are pleased to report continued progress with ongoing technology and product innovation and high-volume manufacturing production ramping support of the further commercialisation of the company’s proprietary semiconductor technology and manufacturing processes during 2025. The company’s proven breakthrough technology delivers thin and flexible integrated circuits (‘chips’) at a significantly lower production cost and lower carbon footprint than comparable silicon chips.
“As an example, our RFID chips can enable item-level intelligence to be embedded in virtually any object on the planet. Moreover, our technology has the potential to fundamentally redefine the global semiconductor industry, with demands for greater supply chain resiliency, diversification of global manufacturing footprint in the face of escalating geopolitical tensions, and significant reductions in emissions, all continuing to present strong tailwinds for the company.
“Pragmatic offers a scalable and capital efficient means to grow semiconductor capacity and allows for truly localised chip production in a way that cannot be matched by other semiconductor technologies, all while dramatically reducing energy and water usage, and eliminating the use of many harmful chemicals required by the industry today.”








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