Type to search

Top China Auto Chipmaker Racks Up $2.7 Billion in State Funding

State media said the investment was a clear sign of Beijing’s push to end the country’s reliance on foreign semiconductor firms

China's flag is seen with a computer chip
China's flag is seen with a computer chip in this Reuters image.


In another sign of Beijing’s push to ramp up its domestic chip industry, one of China’s largest auto chipmakers has racked up billions in state-backed funding.

Chinese auto chipmaker GTA Semiconductor completed a largely state-funded financing round worth over $1.8 billion this week, according to a report by state media Securities Times.

That took the Shanghai-based chipmaker’s total backing to over $2.7 billion of mostly state funds, the Securities Times report said on Wednesday.


Also on AF: Tesla Sues China Chip Designer for ‘Stealing Tech Secrets’


The sum, which some Chinese media outlets have described as one of the largest domestic funding round this year, comes as Beijing prepares to launch a new state-backed investment fund that aims to raise about $40 billion for its semiconductor sector.

Reuters could not determine whether the auto chipmaker’s latest fund-raising was tied to this new fund or not.

Securities Times said, however, that the investment round was a clear signal to the domestic chipmaking industry that Beijing is willing to invest in it in order to end the country’s reliance on foreign semiconductor firms.

While most cars use chips that are not technologically advanced, the rate at which these chips in China are being replaced by domestic manufacturers is lower than 10%, making it a target for more investment in the future, the state-backed newspaper said.

GTA Semiconductor has been backed by state-owned venture capital firms like Shanghai-based Spinnotec, which first announced the $1.8 billion fund-raising round on Monday, without specifying the entities involved.

The chipmaker, founded in 2017, manufactures semiconductors used in automobiles and the power equipment, including smart grids and rail transport, according to a Yicai report.

The company has previously been backed by the Shanghai Integrated Circuit Industry Investment Fund Management, Xiaomi Yangtze River Industrial Fund Partnership, Huada Semiconductor and SAIC Motor’s Shangqi Capital.


  • Reuters, with additional inputs from Vishakha Saxena


Also read:


Huawei’s Chip Breakthrough ‘May Spur Tougher US Tech Curbs’


Money Alone Can’t Rescue China’s Chip Sector, Experts Say


China Offering Millions to Foreign-Trained Chip, Tech Talents


ASML to Ship Top Tech to China Even as Dutch Chip Ban Starts


China Expecting Key Native Lithography Machine This Year: SCMP



Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]


AF China Bond