Chip IP Company XinYaohui Closes Angel and Pre-A Rounds Totaling Over 400 Million Yuan | 5Y News
Accelerate chip innovation.
XinYaohui, a leading chip IP company, recently completed angel and Pre-A funding rounds totaling over 400 million yuan. The Pre-A round was led jointly by HSG, Hillhouse, Yunhui Capital, and Gaorong Capital, with participation from Pine VC, 5Y Capital, Guoce Investment, and Da Hengqin Group. ZhenFund and Dashu Changqing, the company's angel round investors, also followed on with超额 investments in this round.
The funding will be used to attract top technical talent from China and abroad, enhance product delivery capabilities, deepen functionality, and upgrade chip ecosystem connectivity. XinYaohui will also further invest in its service infrastructure.
Ying Zeng, EIR at 5Y Capital, noted that IP, like EDA, represents the most upstream core technology in the semiconductor value chain and serves as an indispensable building block for chip design and manufacturing. For a long time, mainstream and core IP technologies have been dominated by overseas vendors. Following the trend toward domestic substitution and independent R&D, China urgently needs to achieve breakthroughs in core IP technologies. At the same time, "as 5G, cloud computing, AI, and other foundational technologies mature, new application scenarios are being defined and expanded, intelligent connected devices are proliferating, and supply chains are shifting toward domestic alternatives—we believe more and more Chinese brands will turn to domestic solutions, thereby accelerating rapid growth in this market."
"Looking further ahead, we firmly believe China can produce a cohort of global companies with definitional power and voice in critical technology domains, and XinYaohui is among the best startups in this space," Zeng said.
Founded in June 2020, XinYaohui has assembled world-class IP industry talent. Its core team brings decades of R&D, product, and management experience. Centered on self-developed advanced process chip IP, the company is committed to serving data centers, smart vehicles, high-performance computing, 5G, IoT, AI, and consumer electronics in our digital society.
XinYaohui Chairman and CEO Keqiang Zeng previously served as VP of Synopsys China, with over 20 years of sales and management experience in communications, IT, and semiconductors. CTO Mengzhang Li previously held positions as RF/analog chip design manager at Texas Instruments, RF chip research director at MStar Semiconductor, and SVP at UNISOC.
Chip IP serves as the fundamental building block of large-scale digital chips and represents the core component of chip design. As chip design complexity has increased, this technology has scaled and commercialized. Today, chip designs routinely comprise tens of billions of interconnected transistors and other electronic components, including substantial amounts of reusable core IP. Licensing third-party IP and incorporating it into designs can significantly reduce R&D costs and accelerate time-to-market, making this a critical link in the integrated circuit industry chain.
Historically, the US and UK have held enormous market influence in core IP — precisely where China's bottleneck lies. Yet the digital society has created diverse chip usage scenarios, and China's chip design industry is projected to grow at a CAGR exceeding 20%, reaching nearly 900 billion yuan by 2025. Such massive market demand places higher requirements on chip design firms' innovation efficiency. Moreover, chip design and manufacturing processes are accelerating toward advanced nodes, with 14nm and below increasingly becoming the mainstream.
On product development strategy, Chairman and CEO Keqiang Zeng explained that domestic IP development has long remained stuck at mature process nodes, failing to penetrate advanced process domains where substantial opportunity remains. XinYaohui's advantage lies in having first validated that its mainstream interface IP can meet the needs of foundries and design houses, building corresponding product and service capabilities, then extending these to customers for greater value-added services. Meanwhile, its technology will continuously evolve toward the latest industry interface standards and the most advanced process nodes for the future.
About XinYaohui
XinYaohui Technology is a high-tech company dedicated to advanced semiconductor IP R&D and services, enabling chip design and system applications. Through self-developed advanced process chip IP products, it responds to China's rapidly growing chip and application demands, comprehensively empowering chip design. With the unique value and advantages of high stability, strong compatibility, cross-process capability, and portability, its IP products serve critical domains of the digital society including data centers, smart vehicles, high-performance computing, 5G, IoT, AI, and consumer electronics.
5Y Capital (formerly Morningside Venture Capital) currently manages approximately $3 billion in USD and RMB dual-currency funds. We believe the world would be a better place if the "crazy" you that others see began to be believed.
BEIJING · SHANGHAI · SHENZHEN · HONG KONG
