Hong Kong startup develops chips based on open-source technology

In China, Shanghai Starfive Technology has made significant strides in semiconductor development despite geopolitical tensions with the United States. Established in 2018 and backed by billionaire Peter Lee, the company has developed chips based on RISC-V, an open-source design that operates independently from Western technologies, specifically Intel and Arm architectures. As China faces increasing restrictions in accessing advanced semiconductor technology from the U.S., Starfive’s innovations represent a strategic pivot towards self-sufficiency in the semiconductor space. The company has begun its venture with smart gas meter chips, which Hong Kong & China Gas has already purchased in large quantities since late 2022. Building on its initial successes, Starfive is eyeing the data center market, striving to carve out a niche in this competitive environment. In early 2026, the startup will commence sales of a data center management chip, designed to enhance remote server control capabilities. This strategic move aims to provide solutions for traditional and AI data centers across Hong Kong and mainland China, reflecting a growing demand for enhanced data management solutions. Starfive's systematic approach, focusing on gradual growth rather than jumping into the highly lucrative AI chip market, is indicative of its commitment to long-term sustainability and technological development. Investor interest around Starfive has surged, particularly after an undisclosed investment from the government-owned Hong Kong Investment Corp. The company's approach contrasts with some of its RISC-V competitors targeting the faster-growing AI segment. Instead, Starfive emphasizes establishing its technical foundation first. Alan Chan, from Full Vision Capital, states that Starfive’s focus on essential needs within the gas meter sector exemplifies this methodical strategy. This focused pathway is indicative of a longer-term ambition rather than creating an “equity fantasy” by swiftly entering high-stakes markets. The growing dominance of RISC-V as a chip architecture signifies a crucial shift in the technology landscape, especially in a global context where geopolitical relations are increasingly strained. While Starfive and China as a whole seek to enhance their technological capabilities amidst U.S. restrictions, the success of the startup could serve as a critical benchmark for future endeavors in the semiconductor industry. By positioning itself apart from Western reliance, Starfive aims to not only represent a local interest but to redefine China's role in global semiconductor development, setting the stage for future innovations and technological advancements.