Do-it-yourself chips with the blueprints from Codasip

Munich Intel, Infineon, Wolfspeed: Europe’s race to catch up in chip production is particularly noticeable in the public eye due to investments in new factories worth billions. Huge factories are to be built in Magdeburg, Dresden and Saarland.

With more modest means, the Munich start-up Codasip is trying to make Europe more independent from the rest of the world when it comes to semiconductor development. With the software, companies with little staff and in a short time should be able to design their own components in the chip area.

Why is that important?

“All research and development takes place in Europe. Given the geopolitical tensions, that’s a big plus for Codasip,” says Christian Reitberger of venture capitalist Matterwave, one of the start-up’s investors. Chips play a central role in the dispute between China and the USA – for example when it comes to influencing Taiwan, the most important supplier location. The past few years have shown, also because of the pandemic: the chip supply chains are vulnerable.

Codasip, on the other hand, positions itself as an independent European provider of so-called EDA software, which is behind the possibility of in-house design. EDA stands for Electronic Design Automation, a field dominated by US corporations. However, those who use the American programs may also have to bow to US sanctions against China.

Just as important, “We’re driving productivity,” says CEO Ron Black. With Codasip, you can quickly and inexpensively design your own processors, i.e. the brains of every computer, smartphone or car. Apple and Tesla have shown how important it is to take chip design into your own hands.

How does the software work?

Codasip is based on RISC-V, a processor design standard developed by the University of Berkeley that is freely available. So far, RISC-V has not made the big breakthrough. Not enough software runs on it, and some patent issues have not been finally clarified. But RISC-V is becoming increasingly attractive for two reasons.

First: Arm’s pricing policy. The British company supplies the blueprints for a large part of the processors developed worldwide. The Cambridge company collects fees for this – and they are getting higher and higher.

Second: The chip conflict between the USA and China makes the industry more receptive to its own solutions using RISC-V – and thus to Codasip.

Who is behind this?

CEO Ron Black is a veteran chip executive who has led Codasip for three years. The American has replaced founder Karel Masařík. The Czech created the basis for the company with his doctoral thesis. Today, Masařík is a kind of technological mastermind.

The company has almost 200 employees and has so far been financed by venture capital and research funding. The first round of financing took place in 2014 and brought in $4.5 million, followed by another $10 million in 2018. A spokeswoman did not want to say how much flowed in total.

The company is also silent on sales. But: The available funds are sufficient for further plans. According to insiders, Codasip is in the red. The best-known customer is Mobileye, a provider of systems for automated driving.

What are Codasip’s chances?

Basically, Codasip has good prerequisites, says Stefan Wallentowitz, a professor at the Munich University of Applied Sciences and a long-time employee in the RISC-V environment. The market for tools such as those offered by Codasip should grow because the demand for specialized chips in particular is increasing. However, the business is very competitive at the moment.

With the US company SiFive and Andes Technology from Taiwan, there are two strong competitors in RISC-V. In order to be competitive with suppliers of complex chips, Codasip has to expand the product portfolio for them, explains Wallentowitz. So far, the start-up has tended to be in the lower to medium performance classes.

Wallentowitz speculates that it is also possible that the Munich-based company will have to shift its focus: Away from design software towards a provider of standardized products for various areas of application.

What’s next?

“A large company can emerge there, but it will be a difficult road to get there,” says investor Reitberger. Things are going rather slowly, especially on the home market: “Codasip is quite successful in the USA, but unfortunately European customers are much more hesitant.”

Whether Europe can catch up with chips depends not only on subsidies for factories, but also on European industry – whether it gives a domestic start-up like Codasip a chance.

More: This is how extremely chip manufacturers benefit from the AI ​​boom