Semiconductor companies raised $231.6 million in venture capital during the third quarter, a decrease of 44 percent from the second quarter and a year-over-year decrease of 57 percent from the third quarter of 2007, according to a new report from the Global Semiconductor Alliance (GSA) trade group.
The report, which says a total of 21 fabless and integrated device manufacturer (IDM) companies received funding during the quarter, confirms the observation that venture capitalists are investing less in chip companies because of higher design costs and consolidation, according to the GSA.
The number and value of fabless and IDM funding deals decreasing for two consecutive quarters, according to the GSA.
Thirty-five companies, including chip companies, suppliers and solar-industry suppliers, raised $511.7 million in the third quarter, down 4 percent from the second quarter and 36 percent year-over-year, the GSA said. The total number of semiconductor deals closed in the quarter decreased 10 percent quarter-over-quarter and 44 percent year-over-year, according to the trade group.
