Pragmatic markets North East-made semiconductors to Chinese

The innovative chip maker is looking to grow its global business

North East-made microchips that are thinner than a human hair are being marketed in China, the company behind them has revealed.

Pragmatic Semiconductor, which opened its multi million-pound factory site in County Durham in 2024, has launched a new Chinese brand with which it hopes to attract customers in that country. The firm has been exhibiting at the International Internet of Things Exhibition (IOTE) in the country’s southern city of Shenzhen.

It says the launch of the new ‘Pragmatic 湃’ identity demonstrates the significance of the Chinese market – and signals its intention to serve regional customers there. China is considered one of the world’s largest semiconductor markets given its technology-driven strengths in areas such as artificial intelligence and electric vehicles.

Pragmatic’s pioneering flexible semiconductor technology is touted as holding major potential for a range of uses including in packaging, healthcare and consumer electronics, among other ideas. Its ultra-thin semiconductors are physically flexible and can be placed where other counterparts cannot.

The chips offer an alternative to silicon-based alternatives that are energy-intensive to make. And they can be embedded into almost anything, bringing connectivity and intelligence to everyday objects.

James Davey, senior vice president, sales, business development and product management at Pragmatic Semiconductor, said: “Connected products are a critical tool for brand trust, product authentication and protection, and consumer engagement. We are pleased to showcase our customer and partner innovations which demonstrate how flexible semiconductor technology can help brands expand market opportunities and connect the physical and digital worlds.

“With our award-winning NFC product portfolio, expanding partner ecosystem, and new Chinese brand, we are deepening our commitment to customers in China while continuing to scale our global business.”

Pragmatic’s push into China comes as the firm is searching for new equity funding, following its successful £179m series D raise. JP Morgan has been appointed to lead the effort which is intended to ramp up production in County Durham.

In the meantime, the firm has secured £36m of bridge financing from existing investors to keep working. Accounts published earlier this summer, and covering 2025, show Pragmatic saw revenues fall to £901,000, down from £1.69m the year before, and incurred operating losses of £65.1m, up from £55.8m.

Bosses flagged delays to the company’s plan but have pointed to the depth and complexity in their ambition to bring a new, disruptive technology to market. Meanwhile, at Pragmatic Park, a second high-volume production line has been installed to triple the site’s capacity.

Pragmatic’s time at the Shenzhen exhibition was boosted with an award win. It was handed the Radio Frequency Identification (RFID) Product Gold Prize at IOTE 2026’s Innovative Product Awards for its near-field communication product portfolio which includes Pragmatic’s FlexIC, flexible integrated circuit technology.