On September 30, according to an announcement on the China Securities Regulatory Commission’s website, Wuhan Xinxin Semiconductor Manufacturing Co. (XMC) has had its IPO application for the STAR Market officially accepted, marking the official start of its listing process.

According to a report by ICsmart, both Yangtze Memory Technologies (YMTC) and XMC are subsidiaries of the holding company Yangtze Memory Technologies Group.

ICsmart reports that XMC, founded in 2006, is a semiconductor manufacturer focused on NOR Flash memory chips and operates the first 12-inch semiconductor production line in Central China. By the end of 2017, XMC had shipped over 750,000 NOR Flash wafers, covering markets ranging from consumer electronics to industrial and automotive-grade applications, and that year achieved profitability. In 2020, XMC announced full-scale mass production of its self-developed 50nm SPI NOR Flash products.

According to information from XMC’s official website, the company currently offers 12-inch NOR Flash, CIS, and Logic wafer foundry services, with process nodes of 40nm and above.

ICsmart also notes that YMTC, the largest NAND Flash manufacturer in China, successfully developed China’s first 3D NAND flashy in October 2017 through a combination of independent R&D and international collaboration. In 2019, YMTC began mass production of 64-layer 3D NAND based on its Xtacking architecture. By April 2020, YMTC announced the successful development of 128-layer 3D NAND, with its X2-6070 model being the first third-generation QLC flash, boasting the industry’s highest I/O speed, storage density, and single-chip capacity at the time of its release.

In 2022, YMTC was reported to have entered Apple’s iPhone supply chain, providing NAND for the iPhone SE3. However, later that year, the U.S. imposed stricter export controls on Chinese semiconductors, adding YMTC to the Entity List, which has impacted the company’s development.

(Photo credit: XMC)

According to TrendForce’s latest memory spot price trend report, regarding DRAM, with China’s upcoming National Day holiday and the lack of restocking momentum, the spot market is expected to become quieter in the next two weeks, causing the spot prices continue to slide. As for NAND flash, another wave of inventory reduction has surfaced among module houses. Combined with the relatively high inventory of YMTC, the spot market is surrounded by pressure of sales. Details are as follows:

DRAM Spot Price:

The previously mentioned influx of reball DDR4 and DDR5 chips (from decommissioned modules) is still unabated, and most major module houses are compelled to cut prices due to inventory pressure. With China’s upcoming National Day holiday and the lack of restocking momentum in the earlier period, the spot market is expected to become quieter in the next two weeks. Therefore, spot prices will continue to slide as well. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) has fallen by 1.28% from US$ 1.959 last week to US$1.934 this week.

NAND Flash Spot Price:

Another wave of inventory reduction has surfaced among module houses amidst the supposedly peak season, followed by an ongoing decrement of prices, where most sellers equipped with ample stocks are looking to maintain their operations by exchanging their inventory with cash. All the while, YMTC has managed to drop in inventory by rushing to ship out its products to some major module houses at lower prices also due to the pressure aroused by excessive inventory. The spot market is thus lingering amidst pressure of sales. Spot prices of 512Gb TLC wafers have dropped by 3.69% this week, arriving at US$2.610.

Samsung Electronics is reportedly carrying out layoffs in Southeast Asia, Australia, and New Zealand, which could impact less than 10% of its workforce in those regions, according to sources cited by Bloomberg. The scale of layoffs may vary across subsidiaries. The sources also indicated that job cuts are planned for other overseas subsidiaries, with the reduction possibly reaching up to 10% in some markets.

Samsung employs about 147,000 staff internationally, representing more than half of its total workforce of over 267,800, according to its latest sustainability report. Bloomberg noted that Samsung has no plans for layoffs in its home market of South Korea.

In the same report, another source cited by Bloomberg mentioned that employees in Singapore were called into private meetings on Tuesday with HR and managers to be informed about the retrenchment and severance packages.

A Samsung spokesperson told Bloomberg that some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency, and the company has not set any specific targets for particular roles.

Bloomberg also highlighted that Samsung has historically adjusted its workforce in response to the cyclical nature of the memory chip market. Recently, the company cut about 10% of jobs in India and parts of Latin America.

In this latest round, Samsung is expected to reduce less than 10% of its overseas staff of 147,000, focusing cuts on management and support roles while aiming to preserve manufacturing jobs. The actual numbers will depend on local labor laws and financial considerations.

(Photo credit: Samsung)

The global AI wave is sweeping across the world, and China’s large-scale AI model companies are flourishing. Although Chinese AI enterprises started later compared to international giants like NVIDIA and Intel, they are making continuous breakthroughs as they grow. Companies like Infinigence AI and lisuantech have developed rapidly, while others such as VastaiTech, Birentech, Zhipuai, Moore Threads, and Enflame have secured investments from several state-backed funds.

China Internet Investment Fund Invests in Domestic GPU Maker VastaiTech

Recently, VastaiTech (Shanghai) Co., Ltd. underwent a corporate restructuring, with new shareholders including the China Internet Investment Fund (Limited Partnership), Guoshou (Shenzhen) Technology Innovation Private Equity Fund (Limited Partnership) under China Life, and Qingdao Yidun New Industry Investment Fund (Limited Partnership). At the same time, VastaiTech’s registered capital increased from approximately RMB 470 million to around RMB 520 million.

VastaiTech is a high-end GPU chip provider, offering full-stack chip solutions for core AI computing power, graphics rendering, content generation, and AI-generated content (AIGC).

Birentech Prepares for IPO, Backed by China Ping An and China Merchants Capital

On September 12, Shanghai-based Birentech released its “Initial Public Offering and Listing Counseling Report,” signaling its intention to go public. Birentech has completed its Series B funding round, raising over RMB 5 billion. Investors include Zhuhai Da Heng Qin Group, Gree Ventures, China Ping An, New World Group, Country Garden Ventures, Qiming Venture Partners, IDG Capital, among others.

Birentech’s focus is on general-purpose GPU (GPGPU) computing systems. The company launched the BR100 GPGPU chip, built on a 7nm process, and introduced a proprietary heterogeneous GPU co-training solution, which allows Chinese GPUs to coexist with NVIDIA GPUs.

State Capital Invests Again as ZhipuAI Completes New Round of Multi-Billion-Yuan Financing

In early September, ZhipuAI, a large AI model company founded only five years ago, announced the completion of a new financing round, raising several billion yuan. The lead investor is Zhongguancun Science City, a platform established by the Haidian District Government of Beijing.

ZhipuAI has completed 11 rounds of financing and is currently the highest-valued AI large-model unicorn in China. Its investors include well-known institutions such as Hillhouse Capital, Qiming Venture Partners, and Junlian Capital, alongside internet giants like Meituan, Alibaba, Tencent, and Xiaomi.

Enflame Initiates IPO Counseling, Backed by National IC Fund Phase II

On August 23, 2024, Shanghai-based Enflame signed an IPO counseling agreement with China International Capital Corporation, formally launching its A-share IPO process.

Enflame specializes in AI training and inference products. The company has developed the Suisi series of chips, Yunsui training and inference acceleration cards, and Yunsui intelligent computing systems, providing computing power support to internet companies, cloud service providers, network operators, research institutions, and local intelligent computing centers.

Infinigence AI Raises Nearly RMB 500 Million in Series A Funding

On September 2, Infinigence AI announced it had raised nearly RMB 500 million in its Series A funding round, marking the largest single financing record for a startup in China’s AI infrastructure sector. The round was co-led by the Social Security Fund’s Zhongguancun Innovation Fund, Qiming Venture Partners, and Hongtai Fund, with additional participation from Lenovo Ventures, Xiaomi, and other strategic investors.

According to public information, Infinigence AI, founded just 16 months ago, has raised nearly RMB 1 billion in total. Past investors include Sequoia China, Baidu, ZhipuAI, and Tongge Ventures.

Lisuantech Secures RMB 200 Million Investment from Dongxin Semiconductor

On August 19, Dongxin Semiconductor announced an external investment, stating it would use RMB 200 million of its own funds to increase its stake in Shanghai-based GPU company Lisuantech by subscribing to RMB 5 million in additional registered capital. After this capital injection, Dongxin Semiconductor will hold about 37.88% of Lisuantech’s equity.

Lisuantech is dedicated to developing scalable chip designs for multi-layer graphics rendering, meeting the chip and computing power needs in various scenarios such as digital content creation, gaming, animation, film production, AR/VR, digital twin cities and factories, cloud desktops, intelligent cockpits, AI, and large models.

Moore Threads Expands to Wuxi, Attracting Market Attention

Over the past two months, Moore Threads has drawn significant attention for two reasons. First, in September, the company announced plans to “focus on Wuxi strategically” and to establish a manufacturing headquarters for AI SoC chips and intelligent terminal manufacturing, as well as a headquarters for intelligent computing cluster business in Wuxi’s Huishan District.

In terms of financing, Moore Threads has already secured investments from government funds, leading venture capital firms, and capital across the industry chain, including Guosheng Capital, China Mobile, Shenzhen Capital Group, Sequoia China, Five Source Capital, GGV Capital, ByteDance, and Tencent.

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• [News] China’s Core AI Industry Achieved a Market Size of Nearly CNY 600 Billion

(Photo credit: Birentech)

The U.S. was recently hit by Hurricane Helen, causing severe damage in the Southeast. In North Carolina, roads to two critical quartz mines are currently inaccessible, raising concerns about the global semiconductor supply chain. National Public Radio (NPR) reports that if these mines are compromised, it could disrupt chip supply chain worldwide.

Hurricane Helen, which made landfall last week, has claimed over 100 lives across the U.S. Spruce Pine, North Carolina—a key source of high-purity quartz essential for semiconductor manufacturing—suffered heavy damage. The town hosts two vital quartz mines operated by Sibelco and Quartz Corp, which are considered critical to the global supply chain.

It is reported that local officials described the flooding as catastrophic, with much of the area’s infrastructure destroyed or severely damaged. Though the mines themselves are intact, the heavily damaged CSX rail line, the main transportation route for quartz out of the region, has further complicated logistics, according to NPR.

The ultra-pure quartz from these mines is irreplaceable, as it’s a critical material for producing silicon wafers used in semiconductors. This type of quartz is used to make crucibles, where nearly pure silicon is melted. Experts highlight that North Carolina’s quartz mines are the primary large-scale source of this high-purity material.

While Russia and Brazil also supply quartz, Spruce Pine produces the highest quality and quantity globally, according to Ed Conway, author of Material World: The Six Raw Materials That Shape Modern Civilization, as cited by NPR. Without this pure quartz, most semiconductor production would be impossible, as crucibles often cannot be reused.

Though chipmakers likely have stockpiles of quartz to mitigate short-term supply disruptions, restoring infrastructure in the area could take weeks, even though the mines are located on higher ground.

Quartz Corp is currently assessing the situation but said it’s too early to gauge the full impact of the hurricane on production according to the report.

Sibelco noted in its latest statement, “We have confirmed the safety of most employees and are working diligently to contact those still unreachable due to ongoing power outages and communication challenges. As of September 26th, we have temporarily halted operations at the Spruce Pine facilities in response to these challenges.”

Experts warn that while companies have been exploring artificial substitutes for ultra-pure quartz, none have yet met global demand. The consequences of this disaster could ripple across industries, highlighting the broader economic risks posed by climate-related events.

(Photo credit: Sibelco)