China invests US$5.4 billion in 2-year-old memory chip maker as self-sufficiency drive picks up
- Changxin Xinqiao secured funds from state-backed China Integrated Circuit Industry Investment Fund Phase II in late October and two other government linked investors
- Beijing has been intent on making breakthroughs in its semiconductor industry as the US tries to limit China’s access to cutting-edge chip technologies
Semiconductor start-up Changxin Xinqiao Memory Technologies has raised 39 billion yuan (US$5.4 billion) from government-backed investors, a sign Beijing is doubling down on its efforts to achieve technological self-sufficiency and counter US sanctions.
In its latest funding round, Hefei-based Changxin Xinqiao secured 14.6 billion yuan from the state-backed China Integrated Circuit Industry Investment Fund Phase II in late October and funding from two other investors affiliated with the local government, according to Chinese corporate data provider Tianyancha.
It’s one of the biggest investments China’s flagship semiconductor fund, better known as Big Fund, has made since Beijing probed its former heads for corruption about a year ago.
Founded in 2021, the little-known Changxin Xinqiao shares some shareholders and its general manager with China’s leading DRAM chip maker Changxin Memory Technologies, which is also headquartered in the eastern Chinese city of Hefei, according to Tianyancha.
Changxin Memory aims to compete with global leaders including Micron Technology and Samsung Electronics, and it is planning to file for an initial public offering in China that could value the chip maker more than US$14.5 billion, Bloomberg News reported earlier this year.