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Meet The Hong Kong Billionaire-Backed Chinese Startup That’s Making Chips Without U.S. Technology

Apr 01, 2025 - forbes.com
Shanghai Starfive Technology, a Chinese startup backed by Hong Kong billionaire Peter Lee, is making strides in developing RISC-V-based chips, an open-source architecture not controlled by Western companies. This aligns with China's goal to reduce reliance on Western technology amid geopolitical tensions with the U.S. Starfive initially focused on creating RISC-V chips for smart gas meters, securing a significant order from Hong Kong & China Gas. The company is now targeting the data center sector with a RISC-V chip for data center management, set for mass production and already attracting interest from Xfusion Digital Technologies, a Huawei spinoff.

Founded in 2018 with seed funding from Lee's Full Vision Capital, Starfive is one of China's early RISC-V chip designers, alongside Alibaba and Huawei. The company aims to build its technology and chip portfolio steadily, avoiding the AI hype and focusing on domain-specific applications. Starfive's approach has attracted investments from entities like Hong Kong Investment Corp., Baidu, and others. As China promotes RISC-V and AI demand grows, Starfive is evaluating proposals, including a declined $100 million offer for an AI computing chip, emphasizing a careful, one-product-at-a-time strategy.

Key takeaways:

  • Shanghai Starfive Technology is developing RISC-V-based chips to reduce China's reliance on Western technology, with backing from Hong Kong billionaire Peter Lee.
  • Starfive's RISC-V chips are used in smart gas meters and data center management, with significant customers like Towngas and Xfusion Digital Technologies.
  • China views RISC-V as a crucial means to reduce reliance on Western technology amid U.S. restrictions, and is set to encourage its use nationwide.
  • Starfive focuses on building its technology steadily, avoiding the AI hype, and aims to develop domain-specific applications with clear needs.
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