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Top Memory Chipmaker Gets $2 Billion From China’s ‘Big Fund’

Support from the state ‘Big Fund’ is part of a $5.3bn capital expansion by Changxin Xinqiao, a leading memory chip firm in Hefei, as China expands its production capacity and R&D

Illustration showing a chip and the Chinese flag
Other firms added to the list included China Three Gorges Corp, China Construction Technology Co and Yitu Network Technology. Image: Freepik, edited by Aarushi Agrawal.


A memory-chip company called Changxin Xinqiao has won major backing from China’s state-backed chip investment fund.

Records show that the China Integrated Circuit Industry Investment Fund, known as the “Big Fund”, has invested 14.56 billion yuan – nearly $2 billion – in Changxin Xinqiao.

The injection means the Fund has contributed 33% of Changxin’s total registered capital, according to an update on October 26 to the company’s registration information on the National Enterprise Credit Information Publicity System.


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The company registration website Qichacha says Changxin Xinqiao was founded in 2021 in Hefei city, in eastern Anhui province.

Its general manager is Zhao Lun, who is also the chairman and general manager of Changxin Memory Technology, which is one of China’s leading memory chip companies.

Changxin Xinqiao and the Big Fund did not immediately respond to requests for comment.

The Big Fund’s latest investment comes after it invested 13 billion yuan into Yangtze Memory Technologies (YMTC) earlier this year, marking one of its largest investments in recent years.

YMTC, China’s only player in the global NAND memory market, has been aggressively expanding production capacity and R&D with the help of state subsidies. YMTC was blacklisted by the United States in 2022 over fears that it could divert US technology to Huawei Technologies Co Ltd.


Part of $5.3bn of expanded capital

Changxin Xinqiao’s capital raising from the Big Fund is part of a larger registered capital expansion that involved existing investors, Changxin Xinan and Hefei Xinyi, increasing their capital contribution by 10.4 billion yuan and 14 billion yuan respectively – $3.3 billion of $5.3bn of additional capital.

Hefei Xinyi is backed by a couple of investment platforms linked to the state asset regulator in Anhui province, according to entries in the National Enterprise Credit Information Publicity System.

China launched the Big Fund in 2014 as a means to accelerate its semiconductor industry, which is considered to lag behind that of the United States, Taiwan and South Korea. The organization raised 138.7 billion yuan for its first fund, and 204 billion yuan for its second fund.

Last month it was reported that the Big Fund aims to raise about $40 billion in another round, as China ramps up efforts to catch up with rivals.

The fund has however also been embroiled in a corruption scandal that led to a probe into its former head last year.


  • Reuters with additional editing by Jim Pollard




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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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