A venture capital fund backed by China’s leading NAND flash memory producer, YMTC, has invested in Guangzhou-based SOI Micro, a company developing fully depleted silicon-on-insulator (FD-SOI) chipmaking technology as a complementary alternative to mainstream FinFET processes.
- YMTC-backed fund expands investment into FD-SOI chipmaking
- SOI Micro developing low-power 28nm FD-SOI logic technology
- China promotes alternative semiconductor manufacturing tracks
What happened
A venture capital fund supported by Yangtze Memory Technologies Corp (YMTC), China’s foremost NAND flash memory maker, recently took a new stake in SOI Micro, a domestic semiconductor firm focused on FD-SOI technology. The Changcun Industry Investment Fund, set up by YMTC and a state-backed Wuhan investment vehicle, became a shareholder as SOI Micro increased its registered capital to 2.53 billion yuan (about US$375 million).
SOI Micro, founded in 2022 in Guangzhou and led by semiconductor expert Ye Tianchun, is developing a fully depleted silicon-on-insulator manufacturing platform focused mostly on 28-nanometre-class logic chips. The company has made progress in process design and is collaborating with Wuhan-based foundry XMC, aiming for small-volume production targetted around 2025.
Why it matters
China’s semiconductor industry is pursuing not only scaling up mainstream chipmaking but also exploring complementary technologies like FD-SOI, which offers benefits in power efficiency by reducing leakage current. This alternative technology is promoted primarily in the Guangdong Greater Bay Area as part of a strategy to build a more diverse, differentiated semiconductor manufacturing sector.
The involvement of YMTC’s investment fund in SOI Micro extends the focus beyond memory chips to more specialized logic production, signaling broader support for domestic innovation in advanced fabrication methods. This move also reflects China’s intention to reduce reliance on conventional chipmaking technology dominated by foreign firms and to cultivate domestic high-tech capabilities.
What to watch next
Key developments to monitor include SOI Micro’s progress toward its small-volume production milestone expected around 2025, and the extent to which it secures orders from chip design companies to establish a viable supply chain. The company’s collaboration with foundry partners like XMC will be crucial for scaling up its FD-SOI manufacturing capabilities.
Additionally, observing broader investment trends from YMTC’s Changcun Fund and state-backed entities will provide insight into China’s evolving semiconductor ecosystem strategy, particularly how alternative technologies like FD-SOI gain traction alongside mainstream FinFET nodes used by global leaders such as TSMC and Samsung.