Chinese semiconductor company Changxin Xinqiao Memory Technologies has secured 39bn yuan ($5.4bn) funding from government-backed entities, reported Bloomberg.
Citing a local data technology company Tianyancha, the report said that Changxin Xinqiao raised 14.6bn yuan in its most recent funding late last month.
The investment came from China Integrated Circuit Industry Investment Fund Phase II and two other government-owned investors.
Set up in 2021, Changxin Xinqiao is based in the eastern Chinese city of Hefei.
Some shareholders and general manager of Changxin Xinqiao are also affiliated to Changxin Memory Technologies, a leading DRAM chip manufacturer.
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According to a report earlier this year by Bloomberg News, Changxin Xinqiao is preparing to file for an initial public offering in China, which could fetch a valuation of over $14.5bn.
Beijing has progressively increased funding for semiconductors this year through the Big Fund, which serves as the primary finance vehicle for its long-term goals.
The investment in Changxin Xinqiao is one of at least 12 that it has made so far in 2023.
Later this month, US President Joe Biden and Chinese counterpart Xi Jinping are expected meet outside of the Asia-Pacific Economic Co-operation meeting in San Francisco.
Currently, there is no indication that Washington will relax its technological restrictions following Beijing’s tightening of regulations regarding the use of Apple smartphones in state-owned businesses and government agencies.