TLDR
- Hainan Yunfeng Fund Centre, linked to Jack Ma’s YF Capital, has bought a 2.1% stake in InnoStar Semiconductor.
- Real Power Capital and Weihua Electronics also joined InnoStar’s investor list, reflecting increased interest in domestic chip developers.
- InnoStar, founded in 2019, leads China in producing ReRAM chips using 28-nanometre process technology.
- ByteDance holds a 13.2% stake in InnoStar through affiliates, aiming to use its chips in Pico VR headsets.
- Rising memory chip prices and domestic semiconductor demand are driving investment in Chinese chipmakers like InnoStar.
YF Capital has acquired a 2.1% stake in Shanghai-based InnoStar Semiconductor through its affiliate, Hainan Yunfeng Fund Centre. This move makes YF Capital the 14th-largest shareholder in the memory chipmaker, according to a filing dated December 17.
YF Capital Joins Other Strategic Investors
YF Capital’s new position adds to InnoStar’s recent roster of high-profile backers from both private and state-linked entities. Real Power Capital, backed by the Shanghai municipal government, acquired a 0.4% stake, while Hong Kong-based Weihua Electronics took 0.2%. These additions suggest growing investor attention toward domestic chipmakers with emerging technologies.
InnoStar is a developer of resistive random access memory (ReRAM) chips, known for low power use and fast data retention. The company was founded in 2019 and is the first in China to produce ReRAM chips using 28-nanometre process technology. This advancement positions InnoStar as a key player in China’s memory innovation space.
ByteDance invested in InnoStar last year through affiliates Picoheart and Beijing Weilai Yinji Technology, acquiring a 13.2% stake. ByteDance said its goal was to use InnoStar’s chips in its Pico virtual reality headsets. These corporate partnerships reflect practical use cases for the company’s technology in commercial products.
Market Conditions Boost Memory Sector Activity
The investment comes as memory chip prices begin to recover, triggering renewed interest across the smartphone and electronics sectors. Xiaomi and Honor have raised prices for some devices, driven by memory cost increases. This price upcycle may improve profit potential for domestic chipmakers like InnoStar.
Shanghai Alliance Investment remains the largest shareholder with a 16.6% stake, while Memris Asia-Pacific holds 15.6%. These figures indicate a mix of local government and overseas support in InnoStar’s capital base. InnoStar’s shareholder list reflects a growing alignment of strategic and commercial interests.
YF Capital’s move follows a broader investment trend within China’s semiconductor sector due to geopolitical technology shifts. The government is also promoting self-reliance in chip production under current global constraints. This has intensified funding toward companies specializing in advanced memory technologies.
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