Jack Ma-Backed YF Capital Takes Minority Stake in Shanghai Memory Chipmaker InnoStar
YF Capital, a private equity firm backed by Chinese billionaire Jack Ma, has taken a minority stake in Shanghai based memory chip developer InnoStar Semiconductor, adding momentum to China’s push to strengthen its domestic semiconductor industry.
According to updated corporate records, Hainan Yunfeng Fund Centre, an affiliate of YF Capital, acquired a 2.1 percent stake in InnoStar. The change, dated December 17 and published on the business information platform Aiqicha, makes the fund the company’s 14th largest shareholder. While the holding is relatively small, it reflects growing investor confidence in emerging Chinese chip designers working on next generation technologies.
The investment follows an earlier funding round in August that included backing from Ant Group, another company founded by Jack Ma. The involvement of entities linked to Ma has drawn attention within China’s technology sector, particularly as private capital continues to play a role in areas seen as strategically important amid global supply chain pressures. YF Capital did not issue an immediate public response regarding the deal.
InnoStar also welcomed several new shareholders alongside YF Capital’s affiliate. Real Power Capital, an investment firm supported by the Shanghai municipal government, acquired a 0.4 percent stake, while Hong Kong based Weihua Electronics took a 0.2 percent holding. The participation of government linked and cross border investors highlights a broader effort to combine market driven funding with policy support to accelerate semiconductor development.
Founded in 2019, InnoStar specializes in resistive random access memory chips, a form of non volatile memory known for low power consumption and fast data retention. ReRAM technology is increasingly viewed as a promising alternative to conventional memory, particularly for applications in artificial intelligence, edge computing, and industrial systems where efficiency and performance are critical.
The latest funding move comes as China continues to emphasize technological self reliance, with semiconductors remaining a core priority. Although InnoStar is still at an early stage compared with global industry leaders, its ability to attract backing from prominent private equity firms and state aligned investors suggests confidence in its technical direction. For YF Capital, the investment represents a focused bet on future oriented memory technology rather than a controlling stake, aligning with its broader strategy of supporting innovation led companies positioned for long term growth.
