US-blacklisted company iFlytek has set up a new corporate entity to expand into semiconductors and other artificial intelligence-related fields as part of efforts to bolster China’s broader tech self-sufficiency initiatives.
The new entity, Shandong Yixun Information Technology, was incorporated last week with a registered capital of 50 million yuan (US$7.1 million), according to the latest information from Chinese corporate data provider Qichacha.
The scope of this entity’s operations would include integrated circuit design, AI software development and technical consulting for AI public services online platforms, according to Qichacha.
Advertisement
Based in Hefei, the capital of eastern Anhui province, iFlytek on Wednesday said it did not have additional information about the business of Shandong Yixun.
The latest move by iFlytek, which made its name in the area of voice-recognition software, underscored the growing importance of semiconductor design in China, where a growing number of domestic tech companies are developing AI processors that could potentially rival those from industry heavyweights Nvidia and Advanced Micro Devices.
Advertisement
It comes amid this week’s determination by the US Trade Representative Office that Beijing’s drive for dominance in semiconductors was “unreasonable and discriminatory” and posed a direct threat to US commerce.
The agency said the US was implementing a tariff action on a wide range of Chinese semiconductors, with an initial rate of 0 per cent that would rise to a higher level in 18 months on June 23, 2027. The tariff rate would be announced 30 days before the deadline.