Chinese GPU Startup Xiangdixian Cuts Jobs Amidst Financial Troubles
Chongqing, China – Chinese GPU manufacturer Xiangdixian Computing Technology (Chongqing) Co., Ltd. (Xiangdixian) is facing a major setback, with the company confirming it has begun large-scale layoffs. While the companyinitially denied rumors of a complete shutdown on September 1st, internal emails obtained by industry publication Xinzhixun reveal a different story.
According to these emails, Xiangdixian has implemented a simplified resignation process, allowing employees to leave without submitting formal requests. The company is offering an N+1 severance package, meaning employees will receive one month’s salary for every year of service, plus theircurrent month’s salary. However, social insurance and housing fund payments will only be made up to August 2024.
The layoffs are attributed to a significant financial predicament, which has forced the company into a restructuring phasestarting in September. While Xiangdixian claims it is not dissolving or liquidating, the scope of the layoffs suggests a significant downsizing. Sources indicate that over 400 employees were initially told the company was dissolving on August 30th, and that the company has been behind on salary payments for two months.
Xiangdixian was founded in September 2020 with a registered capital of approximately 17.83 million yuan. The company, led by top scientists in the field of computer and high-end chip technology, boasts a team of seasoned experts with an average of over 15 yearsof experience. Xiangdixian has secured over 100 national invention patent authorizations.
The company focused on developing high-performance, low-power general-purpose CPU/GPUs and related specialized chips for desktop, workstation, and edge computing applications. Xiangdixian utilized a perpetual architecture license from Imagination Technologies, a renowned GPU IP design firm, for its IMG B-series and C-series chips. The company has launched two GPU products, Tianjun No. 1 and Tianjun No. 2. Xiangdixian had secured multiple rounds of funding, with its valuation reaching 15billion yuan at one point.
The layoffs at Xiangdixian highlight the challenges faced by Chinese startups in the competitive semiconductor industry. Despite the government’s push for domestic chip development, the sector remains heavily reliant on foreign technology and faces intense competition from established players like Intel and Nvidia.
While Xiangdixian’sfuture remains uncertain, the company’s financial struggles and subsequent layoffs serve as a reminder of the risks associated with investing in emerging technologies. The impact of these layoffs on the Chinese GPU market and the broader semiconductor industry remains to be seen.
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