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Meet the Hong Kong Billionaire-Backed Chinese Startup That’s Making Chips Without Western Technology
In a significant move to reduce reliance on Western technology, a Chinese startup backed by a Hong Kong billionaire is making waves in the chip-making industry. Starfive, a pioneer in RISC-V chip design, has just announced a partnership with Huawei spin-off Xfusion, marking a major milestone for the company.
Founded in 2018 with seed funding from Full Vision Capital, a family office owned by Peter Lee, co-chairman of Henderson Land Development and founder of Full Vision Capital, Starfive is a leading player in China’s RISC-V ecosystem. With its focus on domain-specific applications, the company is committed to creating chips that are commercially competitive.
The partnership with Xfusion, announced recently, underscores the growing importance of RISC-V in China’s chip-making landscape. As tensions between the US and China continue to escalate, Chinese companies are increasingly looking to open-source architectures like RISC-V as a means to reduce dependence on Western technology.
“We are commercially competitive,” says Thomas Xu, Starfive’s founder and CEO, who has worked at HP and was previously CEO of Brite Semiconductor. “We want to create chips that are not only competitive but also meet the needs of our customers.”
As a pioneer in RISC-V chip design, Starfive is well-positioned to capitalize on China’s growing interest in open-source architectures. The company’s early mover advantage has attracted significant investor attention, with government-owned Hong Kong Investment Corp. investing an undisclosed amount in March.
Starfive’s innovative approach is focused on steadily building up its technology and chip portfolio rather than chasing after the most lucrative area of AI chips. “We want to learn to walk before we run,” says Alan Chan, managing partner of Full Vision Capital and chief investment officer of Towngas. “We don’t want to create an equity fantasy by jumping on the AI bandwagon.”
Instead, Starfive is focusing on more practical applications such as smart gas meters for utility companies like Towngas, where its RISC-V-based chips provide a seamless solution.
The company’s recent data center management chip provides remote server control capabilities, allowing administrators to manage servers’ power state, monitor system health, and perform maintenance works. Starting in early 2026, Starfive will sell these chips to Xfusion for deployment into servers and distribution to data centers in Hong Kong and mainland China.
As tensions between the US and China continue to escalate, RISC-V is gaining traction as a means to reduce reliance on Western technology.
Source: https://www.forbes.com/sites/zinnialee/2025/04/01/meet-the-hong-kong-billionaire-backed-chinese-startup-thats-making-chips-without-western-technology/
