Wi-Fi 6 is the latest and fastest standard in the 5G era, and it is one of the most important wireless connection methods. Meanwhile, Wi-Fi 6 router chips are also the technical high ground in this field
Chinese Wi-Fi chip manufacturer Zunpai Communication (Chinese: 尊湃通讯) has completed a Pre-Series A financing round for another hundreds of millions of CNY, bringing the total funding amount to CNY 300 million (USD 44.64 million) in only one year.
The investors in this round include Xiaomi Group, Allin Capital, FutureX Capital, Vision Knight Capital and other well-known financial investment institutions. The proceeds will be spent on R&D, business expansion, operation and so on.
Last May, Zunpai Communication raised nearly CNY 100 million in its angel funding round led by Gaorong Capital, which also invested in the angel plus financing stage, followed by Jiakang Technology.
Su Renhong, founding partner of Allin Capital, remarked that the standards of Wi-Fi have evolved into Wi-Fi 7 over the course of the past 20 years. In the meanwhile, Wi-Fi 6 will experience high-speed growth this year.
Su pointed out that Wi-Fi SoC chips have been monopolized by tech giants, such as Qualcomm, Broadcom and MediaTek, especially in high-performance applications, such as routers.
Due to the technological challenges and enormous capital investment, Wi-Fi SoC chips are “hard nuts” to crack in the semiconductor industry, with few mainland corporates joining in, said Su.
Zhang Kun, CEO of Zunpai Communication, said that the next five to 10 years would be the most critical period for the development of semiconductors in China. He believes that many local companies will bear the burden of developing China’s semiconductor industry and lifting its international profile, and Zunpai Communication will be one of them, said Zhang.
Zunpai Communication, established in March 2021, is headquartered in southwestern China’s Naning, often known as a “city of chips.” The startup is committed to providing high-performance, full-range Wi-Fi router AP SoC chips and complete solutions for families and companies. It is currently focusing on the R&D on the next-generation Wi-Fi 7 chips, according to the company’s website.