Chinese chip company Xin Yaohui Technology Co., Ltd (AkroStar) has raised over 500 million yuan ($78 million) in its Series A round led by returning investor Gaorong Capital.
This puts the corpus raised by AkroStar, that offers semiconductor intellectual property (IP) services to chip makers, to 1 billion yuan ($155 million), according to the company statement.
The round also saw the participation of Matrix Partners China alongside Shanghai-based investment firm Lanpu Ventures, University of Macau Development Foundation, and Macau University of Science and Technology Foundation.
The company’s existing investors such as Sequoia Capital China, GL Ventures, V Fund, Panorama Capital, and Zhuhai Da Heng Qin also topped up.
The funding raised will be used to spruce up recruitment, technology innovation and product R&D, the startup said in its statement.
Located at Southeast China’s Zhuhai city, the one-year-old AkroStar offers IP tools to chipmakers that are widely used across sectors such as data centre, smart vehicle, 5G network, IoT, AI, and consumer electronics, among others.
In the statement, AkroStar also disclosed that it has recently roped in Intel’s former global vice president Anwar Awad who will act as the CEO-in-charge of AkroStar’s global business development. There are other global professionals too that the firm has recruited.
Going forward, AkroStar will work on its domestic R&D team in a bid to expedite the launch of new products.
Earlier in February 2021, AkroStar made headlines when it closed over 400 million yuan ($62 million) funding in its angel and pre-Series A rounds backed by Hillhouse Capital, Sequoia Capital, V Fund, Gaorong Capital, Green Pine Capital Partners, 5Y Capital and others.
China’s IC chip design industry is expected to reach nearly 900 billion yuan ($140 billion) by the end of 2025.