Irvine chip designer 3DSP Inc. says it is looking to secure a $30 million investment by the fourth quarter, topping the $24 million in funding it has attracted over the past two years.
“We’re in pretty good shape, but we need to hire more staff and buy work stations with the money,” said 3DSP Chief Executive Tom Beaver. “We’re looking toward the end of the third quarter and the first part of the fourth quarter.”
Company officials said they expect Intel Capital and Alcatel Ventures, the investment arms of Intel Corp. and Alcatel, to ante up the money as they have for earlier rounds. Intel led 3DSP’s most recent funding in March, which fetched $12.5 million. Alcatel led the $8.5 million investment before that. Private investors ponied $3 million in seed capital prior to Alcatel’s interest.
“If our record repeats, we should be fine,” Beaver said. “Every time, Alcatel and the original investors have given us money. And Intel doesn’t just invest money in any company. My suspicion is that they would also give us money then.”
3DSP doesn’t make chips but licenses its designs to other companies looking to develop advanced communications chips. Companies pay 3DSP royalties for use of the designs. 3DSP employs 84 people in seven locations around the world.
The company plans to expand its German office with the pending investment,a key reason company executives hope to land a fourth round of funding, Beaver said.
“We want to really establish a presence in Europe, with Siemens, Ericsson and Alcatel all there. Wow. All the networking is really done out of Europe,” Beaver said.
3DSP already has grown substantially from last year. Beaver, a former Wyle Electronics executive, joined the company in January and has helped land some notable customers, including National Semiconductor Corp.
Right now, company executives say they are busy flying between Irvine and San Jose to license a new design to a large chip company. Company officials wouldn’t disclose which company 3DSP is talking to, but Beaver indicated Intel is interested in the new technology.
3DSP also has been on a hiring binge, adding at least 20 people in the most recent quarter. And despite a hardened economy, 3DSP still plans to hire people to sell the company’s designs and conjure up new products.
“That’s where we need to spend money. With the Intel Capital investment, they were very pleased we were taking the money and developing new products. They didn’t dictate how to use it, but we know they wanted it for (research and development),” Beaver said.
3DSP recently moved to a 20,000-square-foot office next to fellow OC chip maker Broadcom Corp. n
