Fund backed by China memory giant YMTC invests in push for alternative chipmaking route

A venture capital fund, backed by China's leading NAND flash memory producer Yangtze Memory Technologies Corp (YMTC), has recently invested in SOI Micro, a domestic semiconductor manufacturer. This move strengthens the push for an alternative chipmaking ecosystem in the country.

SOI Micro, founded in Guangzhou in 2022, specializes in fully depleted silicon-on-insulator (FD-SOI) technology. This low-power chipmaking process offers a complementary route to mainstream fabrication methods. The Shanghai-based Changcun Industry Investment Fund, established in 2023 by YMTC alongside another state-backed vehicle, made the investment, though the exact stake size remains undisclosed.

SOI Micro's CEO Ye Tianchun, a prominent semiconductor technologist, led the company during its formation. He previously headed the Chinese Academy of Sciences’ Institute of Microelectronics and served as chief technologist for China’s "02" project. This was a major state initiative to enhance domestic chipmaking equipment and fabrication capabilities.

The investment aims to bolster SOI Micro's development of an FD-SOI manufacturing platform, primarily targeting 28-nanometre-class logic processes. FD-SOI utilizes a thin silicon layer over an insulating layer, reducing leakage and power consumption. This approach complements FinFET technology, which is widely used by leading chipmakers like TSMC and Samsung Electronics.

Guangzhou has actively promoted FD-SOI technology as part of its strategy to build a unique semiconductor industry rather than simply following established manufacturing routes. Ye Tianchun has described FD-SOI as a "second track" for the Greater Bay Area's chip sector. The company is also closely associated with Guangzhou's broader FD-SOI efforts, including the Guangdong Greater Bay Area Institute of Integrated Circuit and System Application, which focuses on FD-SOI processes, devices, and materials.