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AI chip unicorn Horizon Robotics raises US$600m in funding as China seeks to reduce dependence on imported semiconductors

  • South Korea conglomerate SK led US$600m round for Horizon Robotics in latest funding for artificial intelligence semiconductor companies

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AI, seen by many as a core technology driving the so-called fourth industrial revolution, has become a focal point for competition between the US and China. Photo: Reuters
Sarah Daiin Beijing

Chinese artificial intelligence chip designer Horizon Robotics raised US$600 million in its latest funding round, likely one of the biggest of its kind, led by South Korean conglomerate SK, memory chip manufacturer SK Hynix and several Chinese carmaker-backed venture capital funds.

The latest round of fundraising values the Beijing-based start-up at US$3 billion, according to a company announcement on Wednesday. Other backers include China Oceanwide Capital and CMBC Capital and Citic Securities’ One-Belt-One-Road (CSOBOR) Fund.

Horizon also counts Intel as an investor and is among a handful of Chinese players focused on developing AI chips to power surveillance cameras, autonomous vehicles and other Internet of Things devices.

Co-founded in 2015 by former Baidu executive Yu Kai, the start-up has a partnership with German luxury carmaker Audi and China’s Chongqing Changan to develop self-driving cars. The company also has businesses in the securities industry and smart retailing.

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China is working to shake off its dependency on US$200 billion yuan of annual semiconductor imports. And AI, seen by many as a core technology driving the so-called fourth industrial revolution, has become a focal point for competition between the US and China.

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Earlier this week, Hangzhou Nationalchip announced a 150 million yuan round led by a national guidance fund under the State Development & Investment Corp (SDIC) – which has the Ministry of Finance as a major stake holder. Sinovation has backed both companies.

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