January 23, 2008 — Nanochip Inc., a developer of advanced MEMS silicon data storage chips, has completed a $14 million financing round, the company announced.

In conjunction with Intel Capital and JK&B Capital, both investors in earlier rounds, this round was led by an additional investment company. The financing round will allow Nanochip to complete development of its first prototypes later this year to support design verification testing and limited customer sampling in 2009, the company said.

Nanochip is developing a new class of ultra-high-capacity storage chips enabling the storage of tens of gigabytes (GB) of data per chip, or the equivalent of many high-definition feature-length videos. By coupling MEMS with nanoprobe array technology that far exceeds the expected limits of conventional lithography used in present semiconductor memory, these new chips are designed to meet the growing demand for cost-effective, removable and rewritable data storage for use in a wide range of computing, server and consumer electronics products.

Nanochip said its first products are expected to exceed 100 GB per chip set, reaching terabytes (TB) in the future, and at a substantially lower cost compared with flash memory solutions.