Etched, a $5 billion-valued startup and Nvidia competitor, has announced that TSMC manufactured its first chip earlier this year. The company is set to ship systems powered by this chip to customers later this summer. However, scaling production may prove challenging due to limited capacity at TSMC's Taiwan factories.
Jack Selby, founder of Copper Sky Capital and a former PayPal executive, secured an investment in Etched's $120 million Series A by promising to help the startup eventually produce chips in Arizona. Selby's firm is focused on investing in startups based in Arizona and the Southwest, and he believes that coastal startups are overpriced compared to companies in his region.
Copper Sky is currently raising a $300 million second fund to invest in hardware companies, including those in the defense sector, that can set up manufacturing operations in Arizona. Selby's influential role in Arizona's economy and his connection to the local TSMC GIGAFAB were key factors in securing the investment in Etched.
