Biren Technology, a Chinese AI chip startup, has raised 1.5 billion yuan (US$209 million) in new funding.

The company is reportedly preparing for an initial public offering (IPO) in Hong Kong, potentially filing as early as August 2025.

The round was backed by state-affiliated funds from Guangdong and Shanghai, as China boosts its semiconductor self-sufficiency amid US chip curbs.

Founded in 2019, Biren makes AI-focused GPUs and launched the BR100 chip in 2022 as a rival to Nvidia, before facing US trade restrictions in 2023.

Biren initially intended to list in mainland China but opted for Hong Kong due to stricter regulations for unprofitable companies on the mainland.

The startup, previously valued at 14 billion yuan (US$1.9 billion), faces competition from local players like Huawei and scrutiny over its partners from US regulators.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s state-backed semiconductor push shows mixed results despite massive investment

Biren’s fundraising is part of China’s larger national strategy that has poured billions into domestic chip development, yet the results have been uneven.

The Chinese government established the “Big Fund” with plans to invest over $150 billion over ten years to boost domestic semiconductor capabilities 1.

Despite these efforts, China still imports over 90% of its semiconductors even though it accounts for approximately 45% of global demand 2.

This disconnect highlights the extraordinary challenge of building a competitive semiconductor industry from a late start, as China entered the market roughly two decades after global leaders 2.

Industry-wide data shows this struggle continues, with 40% of China’s 181 listed semiconductor companies reporting declining profits in 2024 despite overall revenue growth of 18.5% 3.

Biren’s own performance, generating just 400 million yuan in revenue while operating at a loss, reflects the broader difficulties Chinese chip companies face in translating government funding into commercial success.

2️⃣ AI chips emerge as a strategic priority within China’s semiconductor landscape