Tengxin Microelectronics completed a round of tens of millions of financing to promote the localization of basic IP
On July 6th news, Suzhou Tengxin Microelectronics Co., Ltd. (referred to as "Tengxin Microelectronics") announced that it has completed a round of tens of millions of yuan in financing. The investor is Shenzhen Innovation Investment Group Co., Ltd. (referred to as "Shenzhen Venture Capital"). This round of financing will be used to continue to expand the high-quality R&D team, increase the capacity of existing IP product development, explore more possibilities for IP development, and increase the number of IPs that can be mass-produced.
The company has an IP circuit design team and an EDA software development team that has been in the industry for more than 17 years. It has mastered key core technologies related to the advanced process node Memory Compiler, has 21 intellectual property patents, and can provide internationally competitive 7nm, 14nm, 22nm, 28nm, 40nm, and other advanced technology node memory IPs with overall leading technical parameters.
At present, the 28nm Memory Compiler product with self-holding all intellectual property rights is mainly developed and launched. This product lasted 2 years and passed 3 iterations. It can achieve a success rate of 95% for the first-time delivery of the tape. This product has been delivered to domestic first-line customers, and its technical performance indicators PPA (speed, power consumption, area) overall leads overseas benchmarking companies, and this product series is expected to become the world's most competitive 28nm Memory Compiler product.
Tengxin Microelectronics has experienced three financings so far and completed the first one million seed financing as early as June 2019. The investor is a senior investor in the domestic Foundation IP field; it received Shun financing in June 2020 The exclusive investment in this tens of millions of angel rounds; this time, he successfully obtained tens of millions of A round of investment from Shenzhen Venture Capital.
Foundation IP (Foundation IP) is an indispensable part of ASIC/SOC design and also the infrastructure in chip design. From the perspective of market capacity, it is second only to CPU, GPU, and SerDes IP. Due to the extremely high professional barriers of its advanced process node Memory Compiler technology, the market has always been in a highly monopolized state in the world. At present, overseas companies such as Synopsys and ARM occupy nearly 90% of the global market. For the country, it is still a blue ocean.
The core members of the Tengxin team mainly come from well-known companies in the industry, Faraday and Cadence. In the past, they have delivered a large number of mass production IPs with different process nodes on the client. After the establishment of Tengxin Microelectronics, the products developed in the basic IP products Online have filled up the domestic gap and have now been recognized by several top customers.
Memory IP is a subdivision field with extremely high technical thresholds. Only ARM, Synopsys, Taiwan Faraday, and M31 can provide complete memory IP in the world. There is currently no manufacturer that can provide similar memory IP in China. As a start-up company, Tengxin Microelectronics can customize and develop multiple models at the same time, and customer test reports show that its 28nm products are ahead of the international industry leaders in areas, power consumption, performance, and other indicators, showing strong R&D capabilities.
Affected by the trade war, there is a huge demand for domestic replacement of chips, especially in subdivisions with extremely high technical thresholds such as Memory IP. Therefore, if you want to get rid of the status quo of "stuck neck" in the chip field, the localization of IP is the import of chips. Substitution, one of the important links to realize the localization of chip design, shows that Tengxin is facing a better development opportunity and has sufficient market competitiveness.