Chinese Tech Firms Including CXMT and Alibaba Establish $577M Fund to Support Hard Tech

According to South China Morning Post, Chinese tech companies including ChangXin Memory Technologies and Alibaba established a 3.9 billion yuan ($577 million) fund in Shanghai last week. The Changzhi Hanhai Private Investment Fund, registered in Pudong New Area, aims to provide long-term funding for research and development in "hard tech" industries amid tightening US export controls on advanced chipmaking equipment.

CXMT subsidiary Changxin Xinju Equity Investment holds 30% of the fund, followed by Dongguan Trust at 29.4%, Shanghai state-backed SSCI Leading Fund at 20%, and Alibaba affiliate Hangzhou Haoyue Enterprise Management at 10.2%. The fund formation comes as US restrictions on advanced chipmaking tools have constrained growth for Chinese semiconductor makers including CXMT.