Summary of Key Points
After Changxin Technology, the leading domestic DRAM manufacturer, made its debut on the STAR Market, its market value soared (opening at over 3.3 trillion yuan, briefly surpassing ICBC, Tencent, and Intel). The list of its shareholders reveals a collective effort by local state-owned assets across the country: from Hefei State-Owned Assets, which took the lead in investing ten years ago (covering 80% of the initial funds), to provinces and cities such as Guangzhou, Shenzhen, Tianjin, and Qingdao through industrial chain supplementation and venture capital investments, to Wuxi (promoting industrial collaboration) and Sichuan (making early counter-cyclical investments). Additionally, the second phase of a large fund was supported by more than ten local state-owned assets, demonstrating the transformation of local state-owned assets from focusing on attracting investment to engaging in long-term industrial investment. In the process of breaking the overseas monopoly on domestic DRAM, these regions have bet heavily on achieving self-reliance and control, fostering a regional synergy between capital and industry.
I. Hefei State-Owned Assets: The Stepping Stone That Has Been There for Ten Years
DRAM is often referred to as the "storage warehouse" of chips, and for a long time, it was monopolized by Samsung, SK Hynix, and Micron—technologically challenging, costly, and with a long development cycle. When Changxin was established in 2016, few were willing to invest. However, Hefei State-Owned Assets were the first to take the leap: for the first phase of the project, they allocated 18 billion yuan, with Hefei Investment Corporation contributing 14.4 billion yuan (accounting for 80%), essentially betting all their resources on this high-risk venture.
Today, Hefei State-Owned Assets hold a total stake of 36.79% through various affiliated entities (plus 7.91% from the Anhui provincial state-owned assets, for a combined 45.45% stake), corresponding to a market value of over 1.2 trillion yuan at the opening price. This is not a short-term speculative move but a ten-year commitment. From the company's inception to its listing, Hefei has been the most steadfast strategic investor, supporting Changxin through technological challenges and market uncertainties, acting as a stabilizing force for the company.
II. Guangzhou, Shenzhen, Tianjin, and Qingdao: Precise Layouts for Regional Industrial Chain Enhancement
In addition to Anhui, other provinces and cities are also working to address their own weaknesses:
- Guangdong: State-owned assets from Guangzhou and Shenzhen hold a combined stake of 1.23%. Guangzhou Keji (backed by the Guangzhou Economic Development Zone) invested in Changxin because Guangdong lacks advanced storage companies like DRAM and aims to strengthen its local chip industry chain through capital cooperation with Changxin. Shenzhen Investment Control became an initial shareholder as early as 2023, recognizing the technical value of Changxin.
- Tianjin/Qingdao: Tianjin Haihe Fund (a municipal-level venture capital fund) holds 0.32%, and Qingdao Langge (including the Qingdao government's venture capital fund) holds 0.75%. Both use government-backed funds to support high-tech industries and seek cooperation opportunities for local businesses.
These local state-owned assets are not simply following trends but are targeting specific gaps in their industrial chains with their investments.
III. Wuxi and Sichuan: Smart Investments with Differentiated Approaches
Some regions have more targeted strategies:
- Wuxi: Although its stake does not rank among the top five, Wuxi's approach combines capital with industry integration. With a strong semiconductor foundation (including local companies involved in upstream materials, midstream infrastructure, and downstream packaging and testing), Wuxi has linked Changxin to its local industrial chain through multiple rounds of funding and investments—mutually benefiting from each other's resources.
- Sichuan: Acting as "patient capital," Sichuan's Innovation and Entrepreneurship Fund invested tens of millions in Changxin in 2021, when DRAM was still monopolized by overseas companies and private capital was hesitant. This early investment reflects a strategic focus on long-term development and self-reliance in high-tech industries.
IV. The Second Phase of the Large Fund: The Linking Force of Local State-Owned Assets
Among Changxin's shareholders is also a "hidden network" of local state-owned assets—the second phase of the National Integrated Circuit Industry Investment Fund, which holds 8.73% of the shares. The list of contributors almost represents a map of local state-owned assets, including Shanghai Guosheng, Wuhan Optics Valley Financial Control, Chengdu Tianfu Guoji (each contributing 150 million yuan), as well as Zhejiang, Chongqing, Jiangsu, Beijing, and Guangxi.
This indicates that various regions are indirectly supporting Changxin through this national-level initiative, aligning with national strategies while sharing in the industrial benefits. Including these contributions, there are more than ten provinces and cities that indirectly hold shares in Changxin, truly representing a nationwide effort.
V. The Transformation of Local State-Owned Assets: From Attracting Investment to Becoming Industrial Partners
In the past, local governments focused on providing land and tax incentives to attract businesses. With cases like Changxin, however, they are now directly becoming shareholders, shifting from being mere facilitators to genuine partners:
- They are not seeking quick profits but are committed to long-term support (as demonstrated by Hefei's ten-year investment).
- They are working together across regions (such as Wuxi's industrial integration and Sichuan's early investments).
- Their investments are strategic, targeting national priorities (self-reliance and control) and local needs (strengthening industrial chains).
This represents an upgrade for local state-owned assets: using their capital to foster high-tech industries, helping companies overcome bottlenecks and allowing regions to share in the benefits of industrial growth, achieving a win-win situation.
In Conclusion
Changxin's listing is not just the success of one company but a microcosm of China's local state-owned assets collectively betting on high-tech development and promoting self-reliance in industries. By investing heavily in this field, these regions are demonstrating strategic determination and exploring a new path for industrial upgrading that combines government capital with market-driven enterprises.