YF Capital, the private equity firm founded by Jack Ma, has taken a stake in China's memory chip sector, renewing market focus on semiconductor investment trends. As the US tightens technology restrictions, domestically developed Chinese chips are increasingly seen as strategically critical, driving a rise in related investment activity.
According to the South China Morning Post (SCMP) and CLS, corporate registration data show that Hainan YF Capital Fund Center, an affiliate of YF Capital, has acquired about 2.1% of Shanghai-based memory chip developer InnoStar Semiconductor, making it the company's 14th-largest shareholder.
The equity change was recorded on December 17, based on data from China's corporate information platform Aiqicha. The investment followed Ant Group's entry into InnoStar in August 2025. Both YF Capital and Ant Group were founded by Jack Ma, who also founded Alibaba Group, the parent company of the SCMP.
Documents also show that Real Power Capital, a Shanghai municipal government-backed fund, and Ava International (Hong Kong) have recently taken stakes in InnoStar.
Founded in 2019, InnoStar Semiconductor develops resistive random-access memory (ReRAM) chips, targeting low power consumption and high-speed data retention. It is China's first company to mass-produce ReRAM chips using a 28nm process.
InnoStar's largest shareholder remains Shanghai Lianhe Investment, a Shanghai municipal government entity, with a 16.6% stake.
The reports note that the memory market is entering a price recovery cycle. Alongside rising demand for technological self-sufficiency in China, this continues to channel capital into semiconductors and has prompted smartphone brands to raise prices on some products.
Article translated by Levi Li and edited by Jack Wu
