A leading Chinese chip design company declares bankruptcy

China has been trying to become independent from Western technologies for a long time. This applies to both the hardware and software layers. The official argument is to increase information security for key state institutions and the military, unofficially it is about taking away the US's methods of pressure.

The company's problem could be corruption and mismanagement

Thus, the Chinese are working not only on proprietary processors and graphics cards for desktop computers and laptops, but also on specialized systems for working with artificial intelligence or IoT. Unfortunately it looks like that one of the Chinese leaders has failed because he declares bankruptcy.

Huaxia Chip could easily be described as a rising star among China's IP designers and was crucial to the country's chip industry. The company won a number of industry awardshad over 100 different patents and dipped her fingers in CPU, GPU, DSP and AI.

The website was maintained in both Chinese and English. The company itself had more than just… headquarters in Beijingbut also R&D and sales centers in Shanghai and many other technology centers. Meaning that it's hard to understand how the Huaxia Chip could fall out of favor.

Articles in the Chinese media are not very detailed, but it seems as if the first problems began after the lawsuit brought by Xi'an Jiubufang Enterprise Management Partnership. Some sources also point to a corruption scandal that is plaguing Chinese business supported by large government subsidies.

Various reports reveal that decision-making people associated with Huaxia Chip are currently under strict control of the Chinese justice system. Their assets have been frozen and the suspects are prohibited from trading shares. The case should move quickly due to the company's numerous patents, which are important for China's further development in the field of semiconductor design and production.