Chinese CPU and GPU maker Godson plans to raise US$544 million
Godson Technology is one of the few well-known Chinese CPU designers not on the US blacklist, so potential investors can invest in the company without major risks. This week, the company applied for an IPO on the Shanghai Science and Technology Innovation Board to raise funds and provide funding for its future CPU and GPU development.
According to reports, Loongson plans to raise 3.5 billion yuan ($544 million) to supplement its working capital and increase its R&D spending on next-generation CPUs and GPUs NikkeiThe news agency said that Loongson’s operating income was 1.1 billion yuan, twice the amount of the previous year. But at the same time, its 2020 profitability dropped from 193 million yuan in 2019 to 72 million yuan.
Earlier this year, Loongson Technology launched its own LoongArch architecture to power its processors. The company’s quad-core 3A5000 CPU for client PCs and 16-core 3C5000 CPU for multi-processor servers are the first chips to adopt the new architecture. 3A5000 is already on the market, and the company will release 3C5000 later this year.
Due to US restrictions, China cannot rely on hardware from companies such as AMD, Intel or Nvidia, which makes developing its own platform for exascale supercomputers one of its main challenges. To this end, China needs to develop high-performance GPUs in addition to high-performance CPUs. Facts have proved that Loongson will become one of the companies developing GPUs that can be used in the next generation of supercomputers.
Although Loongson is a private company, the Chinese government supports it through subsidies and tax breaks. In addition, since 2018, government departments have been buying PCs based on CPUs developed by Godson.