https://www.scmp.com/tech/tech-war/article/3276745/chinese-chip-start-xiangdixian-collapses-amid-cash-crunch-and-legal-woes
Chongqing-based Xiangdixian has dissolved the company and terminated the contracts of nearly 400 employees, according to Chinese media reports.
never trust the private sector.
eh, was this one actually even a major player? its not like it's SMIC. They fucked up and may be allowed to fail rather than shoveling them more money:
The company had failed to fulfill terms agreed upon in a previous funding round, following which its shareholders filed a lawsuit that led to the freezing of its bank account, TMTPost reported.
edit: okay it was a significant player in the nascent domestic GPU space. And it has not fully collapsed, it has retained core R&D staff. I don't think this is make or break for china even in this one space
Article, if you're stuck behind the paywall: Chinese chip start-up Xiangdixian said to collapse amid cash crunch and legal woes
Chongqing-based Xiangdixian has dissolved the company and terminated the contracts of nearly 400 employees, according to Chinese media reports
Xinmei Shen
Published: 1:55pm, 1 Sep 2024
Updated: 1:58pm, 2 Sep 2024
Chinese semiconductor start-up Xiangdixian Computing Technology has reportedly collapsed amid a cash crunch and dismissed all employees, highlighting difficulties faced by domestic chip firms despite a nationwide self-sufficiency push.
Xiangdixian, based in the southwestern city of Chongqing, on Friday held an all-staff meeting where it announced the dissolution of the company, terminating the contracts of nearly 400 employees, according to reports from local media such as ijiwei and TMTPost.
The company had failed to fulfil terms agreed upon in a previous funding round, following which its shareholders filed a lawsuit that led to the freezing of its bank account, TMTPost reported. Xiangdixian is now seeking new investors and trying to get access to its account, the outlet said.
But in a statement posted on WeChat on Sunday evening, Xiangdixian denied reports that it has taken measures to dissolve or liquidate the company. The firm said it faced “market adjustment pressures”, as the development of domestic GPUs has not met its expectations.
At present, the company said it is “making adjustments” to reduce operating costs affecting some team members, but will strengthen its core research and development and operation teams. The firm added that it is now actively talking to investors and looking for external financing opportunities.