Welsh tech venture Kubos Semiconductors has secured more than USD 2.1 million to accelerate the development of its novel cubic GaN microLED technology, supporting the next stage of growth for a business embedded in South Wales' world-class compound semiconductor cluster.
The funding includes a Growth Catalyst project grant from Innovate UK, part of UK Research and Innovation, alongside matched investor funding from the Development Bank of Wales, the Low Carbon Innovation Fund 3 (LCIF3) and S4C Digital Media Limited. The fundraise also includes follow-on investment from Kubos' existing shareholders and brings the company's total funding to more than USD 8 million.
Kubos is developing a patented compound semiconductor material aimed at enabling next-generation microscopic light-emitting diodes, known as microLEDs. The technology has potential applications in high-speed optical communications, AI and datacentre infrastructure, next-generation displays, augmented and virtual reality, and high-efficiency lighting.
Based at Cardiff University's sbarc building, Kubos is part of the growing South Wales compound semiconductor ecosystem. The latest funding will help the company demonstrate improved production efficiency at scale, giving it a stronger pathway towards commercialisation and IP licensing within the microLED market.
The investment follows the Development Bank's first backing for Kubos in 2024, when a £500,000 equity investment helped the company establish its Welsh base and strengthen its links with the region's compound semiconductor expertise. That earlier round supported Kubos' plans to bring its revolutionary material technology to South Wales and recruit for specialist roles including testing engineering, device management and development.
This follow-on investment from the Development Bank has helped unlock further capital for the business, including the Innovate UK grant, and supports Kubos as it works towards its next technical and commercial milestones. The support of LCIF3 also gives confidence that Kubos is making progress towards meeting its objectives in a key growth sector for South Wales.
Dr Susan Gormley, CEO of Kubos, said:
“We are deeply grateful to UKRI and our existing shareholders for this investment, which will accelerate the development of high-speed microLEDs for optical interconnects. The project perfectly complements Kubos' ongoing development of a platform-material solution for high-efficiency microLEDs emitting across the visible wavelength spectrum.
“This is an exciting opportunity to strengthen Kubos' pathway to commercialisation through the delivery of transformational technology for AI and datacentre infrastructure, next-generation displays and high-efficiency lighting.”
Gareth Mayhead, Investment Executive at the Development Bank of Wales, said:
“Kubos is exactly the kind of Welsh tech venture that demonstrates the strength and potential of South Wales' compound semiconductor sector. Since our first investment, the team has made encouraging progress in developing technology that could improve the efficiency and scalability of microLED production for global markets.
“Our follow-on funding is a relatively small investment, but it plays an important role in unlocking further capital, including Innovate UK grant support, and gives Kubos the runway it needs to continue proving its technology at scale. The continued support of LCIF3 also reflects confidence in the company's progress and the opportunity for Wales to build on its growing reputation in this key growth sector.”
The Development Bank of Wales has a track record of supporting breakthrough technologies and compound semiconductor businesses. The Low Carbon Innovation Fund (LCIF3) is a co-investment fund operated by the University of East Anglia, focused on developing environmentally beneficial technologies, products or services. S4C Digital Media plays a key role in the delivery of digital content to consumers. This investor group brings experience and knowledge that supports the opportunity Kubos is working to realise.
