Chinese automotive chipmaker SemiDrive Technology has pocketed 1 billion yuan ($137.7 million) in strategic funding, according to a company announcement on July 12.
Among other investors, the round saw the participation of Beijing Economic-Technological Development Area (also known as Beijing E-Town)—a tech cluster located in the southeast of Beijing that is dedicated to the development of strategic sectors like automobiles, new energy vehicles (NEVs), biotech, and robotics.
The chipmaking firm said that it will move its global headquarters to Beijing E-Town. It has R&D centres in Shanghai, Beijing, Nanjing, and Shenzhen, as well as branch offices in Changchun and Wuhan.
Founded in 2018, SemiDrive had completed a 1 billion yuan ($138.9 million) Series B+ round in November 2022 led by a SAIC Motor-backed investment fund to speed up the mass production and application of its automotive chips.
The automotive chipmaker, which counts HongShan (previously Sequoia Capital China) and Temasek-backed Vertex Ventures China among its early investors, claims that the firm has achieved mass production of all its chip products, serving over 260 domestic and foreign automotive firms, including over 90% of carmakers in domestic China.
The Auto & Parts sector remains one of the most sought-after for deep-pocketed investors in China. The sector sealed five mega deals collectively worth over $1.7 billion in Q1, according to DealStreetAsia’s proprietary data. The fundraisers were new energy vehicle (NEV) developers, suppliers or solution providers.
The funding frenzy notwithstanding, the industry is not without struggles and is witnessing waves of layoffs, cost cuts, and factory shutdowns due to intense market competition. Private investors are, therefore, looking to back other emerging technologies that can help carmakers expand their margins.
