On September 11, Shanghai-based AI chip company Suiyuan Technology officially debuted on the STAR Market.

This milestone means that within less than a year, four hard-tech GPU companies rooted in Shanghai—Muxi, Biren, Iluvatar CoreX, and Suiyuan—have successively entered the capital markets. The pressing question is: since most of these companies are still in the early stages of industrial scaling, how have they managed to emerge from Shanghai one after another and gain market recognition?

Uncertainty at Every Step

"Developing a large chip like a general-purpose GPU requires a massive talent pool, a long development cycle, and high tape-out costs," said Iluvatar CoreX Vice President Sun Yile. He noted that for newly formed teams, creating a high-performance computing chip with advanced processes from scratch is exceptionally challenging, adding that "whether we can succeed on the first attempt remains an unknown."

The numbers tell the story: developing a general-purpose GPU chip typically takes two to three years, with tape-out and licensing fees often exceeding 100 million yuan. This means that before launching their first commercially viable product, these companies face continuous cash burn with little to no corresponding revenue.

An Ecosystem That Solves "Where to Build"

Precisely because of these difficulties, companies need a supportive environment to take root—this includes a complete industrial chain from chip design and wafer manufacturing to packaging, testing, and downstream applications.

"Shanghai has a very solid foundation in the AI, semiconductor, and integrated circuit industrial chains," analyzed Mi Lei, founding partner of CASSTAR. He emphasized that in the semiconductor supply chain, Shanghai's SMIC and Hua Hong Semiconductor play an enormously supportive role.

Mi Lei also stressed the importance of spatial density of industrial elements: "From upstream supply chain to downstream customers, the concentration in Shanghai and the broader Yangtze River Delta region is extremely high, which greatly benefits hard-tech companies' innovation."

This synergy extends beyond compute chips. InnoGrit, a storage controller chip company based in Zhangjiang, Shanghai, chose its location with the same logic of industrial chain coordination. "By landing in Shanghai, we can achieve synergy with YMTC and CXMT," InnoGrit CEO Liu Gang told reporters.

Beyond Hiring: The Harder Challenge of Retention

The industrial chain solves "where to build," but whether a chip actually works well depends on "who designs it"—requiring top-tier talent. For newly formed chip teams, talent stability is often more difficult than recruitment itself.

Sun Yile highlighted two specific policies: "Shanghai's precise and efficient household registration policies helped our core team stabilize quickly, and the talent apartment provisions effectively reduced housing costs for our key members." He believes these policies directly address team stability.

For building a pipeline of future talent, companies are exploring joint training programs with local universities. Liu Gang explained that through municipal and district government support, the company collaborates with many of Shanghai's "Double First-Class" universities on industry-education integration to ensure talent development and reserves.

"Votes of Confidence and Long-Term Support at Critical Moments"

While the industrial chain and talent determine whether chips can be built, capital determines whether companies can survive long enough to see that day.

General-purpose GPU maker Iluvatar CoreX experienced a "darkest hour" in financing during its early development. Sun Yile recalled, "When we were developing our first general-purpose GPU, the company faced serious financing difficulties because general-purpose GPUs were not yet widely understood." He noted that Shanghai state capital's strategic investment provided a vote of confidence and long-term accompaniment during that critical period.

If early-stage financing is about survival, then connecting with the capital markets is about scaling up. InnoGrit, also based in Zhangjiang, is currently in the "IPO sprint" phase on the STAR Market. CEO Liu Gang told reporters that controller chips and solid-state drive technology require substantial R&D funding. Shanghai's municipal and Pudong district industrial funds have provided significant support on the company's IPO path, attracting additional social capital into the fold.

Shanghai's "Shark Fry" Accelerating Growth

The combination of industrial chain, talent, policies, and capital points to a relatively ideal growth environment for hard-tech companies.

"Because CASSTAR is focused on hard-tech investment and incubation, we primarily work with top scientific research talent to help them transform and incubate their innovations," Mi Lei said. "In terms of innovation elements, Shanghai is the most complete and concentrated. And as China's financial center, it serves as an exceptionally effective platform connecting technology with capital."