Once a giant, now bankrupt and auctioned

According to the National Enterprise Bankruptcy Reorganization Case Information Network, Huaxia Chip (Beijing) General Processor Technology Co., Ltd. (hereinafter referred to as Huaxia Chip) is open for auction on the JD.com auction network platform.

The auction items include 15 software copyrights, 14 patents, and 3 domain names.

The starting price of the auction was changed from 15,550 yuan to 12,750 yuan, the deposit was changed from 3,110 yuan to 2,550 yuan, and the bid increment was 255 yuan and its integral multiples.

The auction was originally scheduled for 10:00 AM on September 22 to 10:00 AM on September 23, but it has been withdrawn and re-listed. The new auction time is scheduled for 10:00 AM on September 29 to 10:00 AM on September 30.

The auction of 7 million yuan worth of equity in January this year and the auction of 3 domain names on September 23 were both unsold due to no bids.

In April of this year, the Beijing First Intermediate People's Court ruled to accept the bankruptcy liquidation case of Xi'an Jiubufang Enterprise Management Partnership (Limited Partnership) against Huaxia Chip.

He built a tall building and grew rapidly

Huaxia Chip (Beijing) General Processor Technology Co., Ltd. was established on December 22, 2014, with a registered capital of approximately 180 million yuan. It is an innovative enterprise focusing on heterogeneous processor IP and chip solutions.

Huaxia Chip is renowned for its innovative "Unified Instruction Set Architecture", microarchitecture, and toolchains, offering a range of customized chip products across different series. The company possesses CPU, DSP, GPU, and AI processor IP with complete independent intellectual property rights.

Huaxia Chip has achieved remarkable success in technological research and development. For instance, in 2016, it successfully implemented the operation of its IP cores on silicon wafers and passed the Heterogeneous System Architecture (HSA) conformance test. In 2021, the company established an intellectual property system comprising over 100 global patents, filling a gap in China's domestic heterogeneous chip field.

Since its establishment, Huaxia Chip has undergone three rounds of financing, with the amounts undisclosed. Angel Round: Invested by Yizhuang Guotou in 2015; Series A: Invested by Despu, Wuxi An'erfeng Investment Enterprise, and NationalChip Technology in 2018; Series B: Invested by Gezhi Assets in 2021.

It is worth mentioning that NationalChip Technology, once a major shareholder of Huaxia Chip, invested 500 million yuan in the Series A funding round. Later, citing Huaxia Chip's failure to meet performance targets, NationalChip demanded that Li Keyi, the actual controller of Huaxia Chip, pay a performance compensation of 69.6474 million yuan for 2019 and repurchase NationalChip's shares in Huaxia Chip for 169.2137 million yuan. Ultimately, NationalChip secured an investment return of 100 million yuan through litigation. Currently, there is no clear public information indicating whether other investors have recouped their initial investments, but with Huaxia Chip headed towards bankruptcy, it will be difficult for them to achieve their expected returns.

The twilight fades, and his tower crumbles

This once-promising enterprise, boasting strong technical capabilities and vast application prospects, now faces multiple internal risks, including default on obligations, consumption restrictions, equity freezes, and bankruptcy cases.

From 2021 to 2024, the company received 13 travel restrictions, was involved in 37 judicial cases, and was subject to 17 executions. All judicial cases were civil disputes, including seven labor disputes and numerous shareholder disputes such as disputes over shareholders' rights to know. A review of numerous litigation materials reveals signs of Huaxia Chip's bankruptcy crisis as early as 2021.

On April 15, 2024, Xi'an Jiubufang Enterprise Management Partnership applied to the Beijing Intermediate People's Court for the bankruptcy of Huaxia Chip, marking the downfall of the once-dominant chip giant.

Currently, the company's seals and licenses have been invalidated, and an announcement has been issued to auction its domain names and intellectual property rights.

The primary causes of Huaxia Chip's bankruptcy include poor technology and internal management, misguided market positioning, over-reliance on government support without developing effective market competitiveness, and, ultimately, the rupture of its capital chain, which served as the final straw.

Industry Warning: Returning to the Essence of Development

While Huaxia Chip's decline is regrettable, its technological legacy and market experience undoubtedly provide valuable lessons and warnings for other domestic chip enterprises.

It serves as a reminder to the industry to abandon empty slogans, prioritize both technological research and development and capital operations, maintain corporate innovation and sound financial health, and return to the essence of technological advancement.