A worldwide expansion of ground-breaking electronic technology by a British company has taken a major step forward after significant investment from Abu Dhabi.
Paragraf, one of Britain’s most promising private technology businesses, which produces semiconductors made of graphene, has benefited from the Mubadala sovereign wealth fund contributing $35 million.
Graphene’s unique properties enable a host of devices to perform faster, more accurately and with lower energy consumption than silicon-based alternatives.
The input of $55 million in total funding, which includes a 12.8 per cent stake in the company acquired by Mubadala, will enable Paragraf to expand production of “faster, more energy-efficient technologies to the scale required by major commercial opportunities”, said Dr Simon Thomas, the company’s co-founder and chief executive.
“This investment is a strong signal of confidence in Paragraf. We’ve attracted strong interest and are pleased to have secured the backing of both new and existing partners who share our vision for transforming electronics with graphene.”
The Cambridgeshire company’s graphene molecular system can be used to produce liquid and gas sensors for the early detection of disease.
But they are especially useful in extreme environments, including cryogenic systems in quantum computing and in a range of high-temperature and high-radiation applications across industries.
Paragraf will now set up subsidiaries in the Middle East, China and the US. The company said it had a “vision to transform electronics” by being the first global company to use graphene for quantum computing, electric vehicles, energy storage and chemical testing, as well as helping to develop new cancer drugs.
The semiconductor company came within weeks of running out of money after the UK’s six-month national security checks delayed the foreign investment, Dr Thomas said. Paragraf was “pushed to the wire" in obtaining the funding.
Philip Harwood, Middle East regional director for the UK government’s office for investment, said Paragraf exemplified “the best of British innovation, research and technology”.
“This investment demonstrates the UK’s capacity to attract global capital for transformative industries,” he added.
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
