Returning investors topped up to back the company’s R&D plans on ARM processors, which have opened a new market for chipmakers across the globe
China’s intelligent computing solution provider CIX Technology (Chinese: 此芯科技) closed on April 20 its angel++ financing round worth over CNY 100 million (USD 15.6 million).
The lead investor is Shunwei Capital, joined by existing backers Sky9 Capital and Qiming Venture Partners.
The proceeds will be used to accelerate CIX’s product R&D and market expansion as in the previous two angel rounds, per a company statement.
Sky9 Capital has poured money into the deal since CIX’s angel+ round. “ARM processor, also the current focus of CIX’s R&D plan, displays unexpected possibilities in its performance. Compared with traditional X86 chips, ARM processors are better customized, more controllable, and more profitable, as the ecosystem-backed structure is less dependent on exterior technical support from monopolistic CPU suppliers, ” Davy Shen, executive director of Sky9 Capital, told EqualOcean.
The domination of X86 chips, led by chip giants including Intel and AMD, has been shaken up when Apple released its M1 microprocessor in November 2020.
This innovation exceeded industry expectations as it can power smart gadgets for longer, with less performance loss, paving the way for a richer ecosystem of applications on terminal devices.
Apple, for example, said at the launch of M1 that it would equip its tablets and phones with this next-generation chip.
The ARM structure has since been adopted by top companies worldwide, including Apple, Qualcomm, Ampere, Amazon, Google, and Alibaba. “Sky9 Capital also views ARM as a promising market, and CIX Technology has a professional team in this field.”
The Shanghai-based startup, founded in October 2021 by core members from global semiconductor and IT companies, aims to create ARM-compatible computing solutions with technologies in CPU SoC design, software, and system design. The firm focuses on applying ARM chips in multiple scenarios, including laptops, high-end tablets, desktops, and AR/VR/XR.
“We expect CIX to become a leader in this segment,” Shen claimed. “Whether it succeeds or not hinges upon an ecosystem, where top players combine their efforts to create something together.”
Many fledgling players have become beneficiaries of China’s enormous investment in the semiconductors and components industry. Another biochip developer Onechip Bioelectronics (Chinese: 万众一芯) announced on Tuesday the completion of its Series B+ financing round worth CNY 150 million, led by Qiming Venture Partners. Other investors included Matrix Partners and Desheng Fund.
Shen also believes that the ARM chipmaking CIX is engaged in has a higher barrier to entry, meaning new entrants are few and existing players are all fixated on R&D and releasing their first prototype. “Competition in the ARM field is mainly focused on technology or who ‘gets there’ first, rather than costs. In other words, ARM is still a blue-sea market,” said Shen.
“Currently, the intelligent chip industry is still in embryo. Sky9 has been backing companies in this market, including domestic AI chip firm Biren Technology (Chinese:壁仞科技) and DPU developer YunSilicon (Chinese: 云脉芯联). The market is attracting more and more players with cutting-edge products,” Shen observed.
The veteran investor with seven years of venture capital experience expressed a will to keep supporting CIX Technology in the future. “ARM is an unstoppable trend, and it’s incumbent on leading companies to realize its possibilities,” he noted.