iFlytek Launches New Semiconductor Entity as China Pushes AI Chip Self-Sufficiency
Chinese artificial intelligence firm iFlytek has established a new corporate entity aimed at expanding into semiconductor design and AI-related technologies, signaling a deeper push into strategic hardware development amid tightening U.S. restrictions.
The company, which is on a U.S. blacklist, incorporated Shandong Yixun Information Technology last week with registered capital of 50 million yuan (about US$7.1 million), according to Chinese corporate database Qichacha.
New Unit Focuses on Chip Design and AI Software
Corporate filings show that Shandong Yixun’s business scope includes:
Integrated circuit (IC) design
Artificial intelligence software development
Technical consulting for AI-powered public service platforms
The move aligns with China’s broader strategy to strengthen domestic capabilities in semiconductors and AI infrastructure, reducing reliance on foreign technology.
iFlytek, which is headquartered in Hefei, Anhui province, said on Wednesday that it had no additional details to disclose regarding the new entity’s business operations.
From Voice Recognition to AI Hardware Ambitions
iFlytek rose to prominence through its voice recognition and speech-processing software, widely used in education, healthcare, and government services across China. Its expansion into semiconductor design highlights the growing convergence of AI software and custom hardware, particularly as Chinese firms look to develop in-house AI processors.
An increasing number of domestic technology companies are now pursuing homegrown AI chips, hoping to compete with global leaders such as Nvidia and AMD, whose products face export controls when sold to China.
Move Comes Amid Rising US-China Tech Tensions
iFlytek’s semiconductor push comes as U.S.–China trade and technology tensions continue to escalate. Earlier this week, the U.S. Trade Representative (USTR) said China’s drive for semiconductor dominance was “unreasonable and discriminatory” and posed a threat to U.S. commerce.
The USTR also announced plans to impose new tariffs on a broad range of Chinese semiconductors. While the initial tariff rate will start at 0%, it is set to increase after an 18-month period, with higher rates taking effect on June 23, 2027. The final tariff level will be disclosed 30 days before implementation.
Bigger Picture
iFlytek’s latest move underscores how AI companies in China are increasingly turning toward chip design as access to advanced foreign semiconductors becomes more restricted — a trend likely to reshape the global AI and semiconductor landscape in the years ahead.
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