From Chip Design to HBM, China Accelerates Its Drive for Semiconductor Self-Reliance

China is pushing to cover more of the semiconductor chain at home, from designing artificial-intelligence processors to producing the high-bandwidth memory used in AI accelerators. The latest moves involve two companies: Enflame Technology, an AI chip designer backed by Tencent, and CXMT, China’s largest DRAM maker.

Enflame plans to list on the Shanghai Stock Exchange’s Star Market and raise 6.12 billion yuan. Its offering price is set at 142.18 yuan per share, with about 43 million shares representing 10% of its post-listing stock. The subscription is scheduled for the second day of the month.

Enflame is grouped with Moore Threads, Biren Technology and MetaX as China’s “four little dragons” in AI semiconductors. The companies have attracted attention as Beijing and Chinese businesses seek alternatives to a market dominated by Nvidia. Nvidia accounted for 55% of China’s AI accelerator shipments last year, according to SWS Research, while Enflame held 1.7%.

Tencent owns about 20% of Enflame and serves as its main customer. Tencent’s share of the company’s revenue rose from 38% in 2024 to 84% last year. Enflame’s first-half revenue grew 279% year on year to 1.12 billion yuan, but it recorded a net loss of 632 million yuan.

CXMT has also started limited production of HBM3E, according to Reuters, citing The Information. The company plans to expand production in 2027. Alibaba’s T-Head and Cambricon are testing CXMT’s memory in their processors, with products using it expected early next year if the plans proceed. India and Japan are pursuing their own semiconductor self-reliance programs, showing that the push extends beyond China.