Chain Reaction

What Chain Reaction does

Chain Reaction Ltd. is an Israeli fabless semiconductor company founded in 2019 that designs application-specific integrated circuits (ASICs) for two distinct computational workloads. Its flagship 3PU™ Privacy Processor is a purpose-built hardware accelerator for Fully Homomorphic Encryption (FHE), engineered to perform computation directly on encrypted data without requiring decryption, with claimed orders-of-magnitude acceleration versus CPU-only execution. The processor supports major FHE schemes (BGV, BFV, CKKS, TFHE) and integrates with leading open-source compilers (Google's HEIR, Zama's Concrete) and libraries (OpenFHE, HEAAN, Lattigo, TFHE-rs), and is positioned as plug-and-play infrastructure for AI and cloud data centers handling privacy-sensitive workloads in regulated industries.

The company's second product line, EL3CTRUM, is a Bitcoin mining ASIC offered in air-cooled and immersion-ready form factors, marketed for energy efficiency and high hash throughput. Chain Reaction targets enterprise buyers directly — AI and cloud providers for 3PU™ and oil-and-gas energy companies for EL3CTRUM (including a use case of converting flared associated gas into mining revenue) — via a direct enterprise field-sales motion with no public pricing or self-serve channel. The company is headquartered in Yokneam Ilit, Israel, with additional offices in Tel Aviv, San Jose (USA), and Hsinchu City (Taiwan), and has raised approximately $115 million across four rounds from 2019 to 2023, including a $70 million Series C led by Morgan Creek Capital Management with participation from BlackRock, Exor, JVP, Hanaco Venture Capital, KCK, and Atreides Management.

Name

Chain Reaction

Legal name

Chain Reaction Ltd.

Website

https://chain-reaction.io

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

101–250 employees

Short description

Chain Reaction is an Israeli fabless semiconductor company that designs ASIC processors — the 3PU™ accelerator for Fully Homomorphic Encryption and the EL3CTRUM Bitcoin mining hardware — selling directly to enterprise AI/cloud providers and oil-and-gas energy companies.

Ownership category

akta.pro rank

Product category

Cryptographic and Mining Semiconductor Hardware

NAICS

Custom Computer Programming Services (541511)

SIC

Services-Computer Programming, Data Processing, Etc. (7370)

akta.pro primary industry

Security & Trusted Hardware ICs (Secure Element/TPM/Crypto) (HDAHABAF)

akta.pro secondary industries

Confidential Computing & Hardware-backed Protection (TEE/HSM) (HDADAFAJ), Mining Hardware (ASIC/GPU) Manufacturing & Distribution (FSADAOAD)

Keywords

• Homomorphic encryption hardware
• FHE processor accelerator
• Bitcoin mining ASIC
• Privacy-preserving compute
• Encrypted computation silicon

Headquarters

HQ city

Yoqne`am `illit

HQ country

Israel

HQ region

Middle East

Offices4 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Technology or R&D, Personnel, Supply Chain, Infrastructure, Marketing or Sales

Revenue model

1. FHE Processor Sales (3PU™): Sale of specialized FHE hardware accelerators (3PU™) to AI and cloud enterprises requiring privacy-preserving computation. Processors are delivered as plug-and-play hardware for data center integration.
2. Bitcoin Mining ASIC Sales (EL3CTRUM): Sale of EL3CTRUM ASIC mining hardware to enterprise energy companies and data center operators. Available in air-cooled and immersion-ready models with modular, customizable configurations.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels6 records

Core offering

Chain Reaction designs and sells custom ASIC processors for two markets: the 3PU™ Privacy Processor accelerates Fully Homomorphic Encryption workloads to enable computation on encrypted data for AI and cloud customers, while the EL3CTRUM line provides high-performance, energy-efficient Bitcoin mining ASICs for enterprise miners and energy companies. Both product lines are sold as plug-and-play hardware intended for integration into enterprise data center and energy infrastructure.

Product overview

Chain Reaction builds processors for encrypted computation, offering two distinct product lines: (1) 3PU™ Privacy Processor — a Fully Homomorphic Encryption (FHE) hardware accelerator designed to enable practical, scalable encrypted computation for AI and cloud workloads; and (2) EL3CTRUM — a Bitcoin mining ASIC product line providing high-performance and energy-efficient mining hardware with air-cooled and immersion-ready models. The company also provides an integrated software stack that accompanies the 3PU hardware for deployment in data center environments.

Differentiator

Problem solved

Functional benefit

Brands

• 3PU™: Fully Homomorphic Encryption (FHE) processor designed to enable practical, scalable encrypted computation for AI and cloud workloads.
• EL3CTRUM

Products and services

• 3PU™ Privacy Processor

Named customers1 record

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature3 records

Scale indicators1 record

Recent moves7 records

Expansion highlights6 records

Direct peers

• Cornami: Cornami develops scalable computing architectures specifically targeting Fully Homomorphic Encryption acceleration, directly competing with Chain Reaction's 3PU™ in the FHE hardware-accelerator category.
• Duality Technologies: Duality Technologies offers a commercial FHE software platform (OpenFHE-based) for secure data collaboration; it is comparable to Chain Reaction because both target enterprise buyers needing practical FHE for AI/cloud workloads, though Duality is software-only.
• Bitmain: Bitmain is the dominant Bitcoin mining ASIC manufacturer (Antminer line) and the principal direct competitor to Chain Reaction's EL3CTRUM product in efficiency, scale, and miner-buyer relationships.
• MicroBT: MicroBT's Whatsminer is one of the top-selling Bitcoin mining ASIC brands globally, making it a direct competitor to EL3CTRUM in the same energy-efficient mining-hardware category.
• Canaan: Canaan designs and sells Avalon-series Bitcoin mining ASICs and is publicly listed (NASDAQ: CAN); it competes head-to-head with Chain Reaction's EL3CTRUM for enterprise mining buyers.

Emerging players

• Zama: Zama builds the Concrete TFHE compiler and open-source FHE tooling that Chain Reaction explicitly integrates with; Zama is comparable as a complementary/competing FHE stack provider whose roadmap directly affects 3PU™ developer adoption.
• Inpher: Inpher provides a Secret Computing platform built on FHE and secure multi-party computation for enterprise data analytics, comparable to Chain Reaction as a privacy-preserving compute provider targeting regulated buyers.
• Niobium: Niobium builds custom hardware-accelerated confidential computing silicon, making it a closely comparable emerging FHE/confidential-compute hardware peer to Chain Reaction's 3PU™.

Broad incumbents

• Intel: Intel offers confidential computing through SGX, TDX, and TEE-based solutions and participated in Chain Reaction's ecosystem via Intel Ignite; it competes as a broad incumbent addressing the same privacy-preserving compute buyer with a different architectural approach.
• NVIDIA: NVIDIA's H100 and Blackwell GPUs include confidential-compute features and dominate AI infrastructure; it is the de-facto alternative to 3PU™ for enterprises choosing GPU-based acceleration over custom FHE ASICs.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/chainreactioni0
• LinkedInlinkedin.com/company/chainreaction11

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds4 records

Investors8 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Chain Reaction