For decades, chipmakers have focused on making semiconductors faster by shrinking silicon transistors and fitting more of them onto each chip. However, as transistors get smaller, managing the flow of electrons becomes more difficult, leading to issues like electrical leakage, power inefficiency, and heat buildup. Nexstrom, a semiconductor startup based in Singapore and incubated by Xora Innovation, is exploring an alternative: using two-dimensional (2D) materials instead of traditional silicon. These ultra-thin materials, known as transition-metal dichalcogenides (TMDs), are just a few atomic layers thick and could offer a way to continue shrinking chip sizes while maintaining performance. Nexstrom is developing equipment and processes to manufacture TMDs directly on 300mm (12-inch) wafers, which are standard in commercial chip production. This approach could help address the ongoing global component shortage, driven largely by the high demand for data center hardware. The company's product, called North Star, is designed to grow these materials at scale, a challenge that has proven difficult for researchers in laboratory settings. "In the lab, people can get very small, high-quality materials, but only on a very small scale," said Lance Li, Nexstrom's co-founder and chief scientist, who previously worked on post-silicon electronics at TSMC. "This is exactly the gap Nexstrom is addressing." Nexstrom recently raised $12 million in a seed funding round, bringing its total raised capital to $15 million. The company is not alone in pursuing the potential of 2D materials for next-generation semiconductors. TSMC, Intel, and IMEC, a research center in Belgium, are also working on integrating these materials into transistors. Equipment and materials suppliers, including AIXTRON and CDimension, are developing related technologies. Recently, TSMC, ASML, and IMEC demonstrated how 2D-material transistors could be used in a 300mm integration process. Rather than competing with these industry giants, Nexstrom aims to partner with them or sell its technology to help advance the manufacturing process. Despite the progress, several challenges remain before TMDs can be manufactured at scale. One of the biggest hurdles is consistently growing these materials across an entire 300mm wafer. Nexstrom's CEO, Phoebe Tan, said the company is focused on meeting the material quality specifications set by industry partners. "We have proven material results on wafers using our 12-inch system that has just been installed," she said. The company plans to scale its technology from 2-inch to 8-inch wafers by the end of October. Nexstrom expects its equipment to be ready for commercial production between 2030 and 2035, with the current funding supporting further development, process improvements, and expansion of its team.