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Chinese CPU and GPU Maker Loongson Plans to Raise $544 Million

Loongson
(Image credit: HKEPC)

Loongson Technology is one of a few well-known CPU designers from China that is not on the U.S. blocklist, therefore potential investors can invest in the company without major risks. This week the company filed for an IPO on Shanghai's STAR Market in a bid to raise money and fund the development of its future CPUs and GPUs. 

Loongson plans to raise 3.5 billion yuan ($544 million) to replenish its working capital and increase its R&D spending on its next-generation CPUs and GPUs, reports Nikkei. The news agency claims that Loongson earned 1.1 billion yuan in operating revenue, two times more than in the previous year. But at the same time, its profitability in 2020 dropped to 72 million yuan from 193 million in 2019. 

Earlier this year, Longson Technology introduced 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 use the new architecture. The 3A5000 is already available, whereas the company will release the 3C5000 later this year. 

Due to US restrictions, China cannot rely on hardware from companies like AMD, Intel, or Nvidia, making developing its own platform for exascale supercomputers one of its main challenges. To do so, China needs to develop high-performance GPUs in addition to high-performance CPUs. As it turns out, Loongson will be one of the companies that will develop GPUs that could potentially be used for next-gen supercomputers.   

While Loongson is a privately owned company, the Chinese government has supported it through subsidies and tax breaks. Also, government offices have been buying PCs based on Loongson-developed CPUs since 2018.

  • digitalgriffin
    Wouldn't be caught dead supporting an adversary in cyber space.

    No matter how you cut it, China is two faced and aggressive through sneaky tactics from cyber warfare, salami slicing policies, industrial espionage, slave labor, harvesting of organs from prisoners, ethnic cleansing and more. They have among the worst human rights records.
    Reply
  • ZTedster
    A communist regime who doesn't give a flying f*** about their individual subjects?!

    SHOCKING!!!
    JUST SSSHHOCKING!!!

    Sarc aside, they are even more brutal than the Soviets were on their people. The CCP is by far the most downright evil thing I've ever seen. Pure evil. They make the Soviets look like pikers in comparison.
    Reply
  • Zarax
    Some competition on the lower end of the market can only be a good thing.
    Zhaoxin/Loongson can effectively take what was Cyrix market spot and produce some semi-viable competition.

    All we miss now is Matrox trying again its hand at consumer GPUs then we are back in the 1990s!
    Reply
  • renz496
    Zarax said:
    Some competition on the lower end of the market can only be a good thing.
    Zhaoxin/Loongson can effectively take what was Cyrix market spot and produce some semi-viable competition.

    All we miss now is Matrox trying again its hand at consumer GPUs then we are back in the 1990s!

    we still have several legit GPU maker but most of them have no desire to compete in desktop market.
    Reply
  • pocketdrummer
    After all the forced technology transfer, stolen IP, cyber terrorism, and aggression from China, I'll literally take a 50% performance cut not to buy a Chinese product at this point.
    Reply
  • Zarax
    renz496 said:
    we still have several legit GPU maker but most of them have no desire to compete in desktop market.

    That's why I mentioned Matrox, it's a good example of a company with some decent consumer-related IP but seemingly not interested in consumer market anymore.
    Reply