Chongqing Xinhui Materials Technology Co., Ltd. has completed a 30 million yuan ($4.2 million) Series B+ financing round backed entirely by Xi'an Yicai, as domestic capital continues to flow into critical semiconductor equipment components and materials to hedge against tightening international trade restrictions.
Founded in 2022 in Chongqing’s Liangjiang New Area, Xinhui Materials manufactures core equipment parts and specialized materials for chipmakers. The fresh capital injection comes amid a broader acceleration of funding and initial public offerings across China’s semiconductor hardware supply chain, driven by state policy incentives and an aggressive push for domestic supply-chain self-reliance.
The capital expansion in semiconductor equipment components has gained significant momentum in 2026, highlighted by key regulatory milestones. Precision fluid vendor Gaokai Technology secured approval from the Shanghai Stock Exchange IPO committee in June, while component supplier Zhenbao Technology debuted on the STAR Market. Industry players like Zhenbao have achieved volume production of silicon upper electrodes, quartz gas distribution plates, and high-purity silicon carbide rings supporting 14-nanometer logic chips, 200-layer 3D NAND flash memory, and 20-nanometer DRAM nodes.
The surge in private and public investment aligns with technical targets outlined in the national 15th Five-Year Plan for the Electronic Information Manufacturing Industry, jointly issued by the Ministry of Industry and Information Technology and the National Development and Reform Commission. The plan mandates technical breakthroughs in high-performance functional materials, advanced packaging, and process auxiliaries to enhance the reliability and consistency of domestic electronic components.
External trade pressures, including restrictions under the U.S. MATCH Act targeting advanced etching, deposition, and lithography tool exports to China, are further accelerating the domestic replacement timeline. According to industry data from QYResearch, China's market for precision fluid control components and equipment is projected to grow from 32.4 billion yuan ($4.5 billion) in 2024 to 53.0 billion yuan ($7.4 billion) by 2030, propelled by domestic wafer fabs allocating up to 80 percent of their expansion budgets to equipment procurement.
