China's largest independent memory company, Longsys, has launched a major funding drive, announcing a private placement plan to raise up to 3.7 billion yuan (approx. $510 million). The capital will be focused on advancing its capabilities in the core AI storage segment and supplementing working capital.
The proposed placement requires approval from shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission before proceeding.
The funds are earmarked for a strategic three-pronged layout:
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1.22 billion yuan for SSD controller chip series R&D.
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880 million yuan for high-end, AI-oriented memory R&D and industrialization.
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500 million yuan for building a high-end semiconductor storage packaging and testing facility.
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1.1 billion yuan for working capital.
The move specifically targets key AI storage bottlenecks, with investments directed towards products like enterprise-grade PCIe SSDs, RDIMMs, and high-end consumer storage—critical for AI servers and AI PCs.
This strategic push builds on a solid foundation. The company's self-developed UFS 4.1 controller chip has been adopted by leading industry clients, with cumulative deployments exceeding 100 million units.
Financially, Longsys is well-positioned for expansion. For the first three quarters of 2025, it reported revenue of 16.734 billion yuan and net profit of 712 million yuan, both growing over 25% year-over-year.
The fundraising aims to strengthen Longsys's supply chain resilience and self-reliance in chips and packaging, bolstering its position as the world's second-largest independent memory company.
ICgoodFind: Longsys's substantial investment signals strong confidence in the long-term growth of AI-driven storage demand and its own strategic positioning within it.
