United States-based semiconductor company SiFive has launched a subsidiary in China to meet the rising demand for RISC-V-based chips in the region.

The new entity, Shanghai Xinwu Technology, is located in Shanghai’s Pudong New Area free-trade zone, according to the company’s announcement on WeChat.

SiFive, founded in 2015 and headquartered in Santa Clara, California, focuses on designing chips using the open-source RISC-V architecture.

The establishment of this subsidiary comes as Chinese firms and research institutions increase their efforts to adopt RISC-V architecture.

This shift aims to reduce dependence on foreign suppliers amid tightened US export controls on advanced chip technology.