China is taking significant steps to increase its domestic supply of critical technology, particularly in the semiconductor industry. One of the key developments is the establishment of a new semiconductor company called Changxin Xinqiao Storage Technology (CXMT), which will operate a 150 billion yuan ($5.3 billion) factory in Hefei, Anhui Province.

According to credit information provided by Qichacha, a domestic research firm, Changxin Xinqiao recently secured funding for the project. The main investor in this funding round is China Integrated Circuit Industry Investment, a state-backed organization that supports the growth of China's chip industry. This organization, also known as the "Big Fund," now owns 33 percent of Changxin Xinqiao.

The motivation behind these investments is China's desire to create a semiconductor supply chain that is less susceptible to U.S. sanctions, given the increasing tensions between the two countries. Changxin Xinqiao plans to use the funds to accelerate the construction of the factory.

The company aims to produce dynamic random-access memory (DRAM) chips at the new facility. DRAM chips have various applications, particularly in computers and other electronic devices. With the additional funding, Changxin Xinqiao will expedite the procurement of equipment and other necessary procedures. The company has already started bidding for the factory's equipment and plans to begin mass production in approximately three years.

ChangXin Memory Technologies (CXMT), a major DRAM manufacturer, also has a production facility in Hefei and holds a stake in a company that owns the majority of Changxin Xinqiao.