ByteDance Backs China’s ReRAM Startup

The recent investment deal involving Picoheart, an affiliate of ByteDance based in Singapore, has caught the attention of tech enthusiasts and industry insiders alike. Picoheart, known for its specialization in virtual reality (VR) headsets, made headlines with its purchase of a 9.5 per cent shareholding in InnoStar. This strategic move hints at potential collaborations between the two companies, with Picoheart eyeing the use of memory chips produced by InnoStar in its VR headsets.

InnoStar, formerly known as Xinyuan Semiconductor (Shanghai) Co. Ltd., has been making waves since its establishment in 2019. The company boasts a team of seasoned professionals, including former employees of tech giants like Intel, SMIC, and Spreadtrum Communications. With a substantial funding of hundreds of millions of dollars, InnoStar aims to establish China's first 28nm/22nm ReRAM pilot wafer fab, signaling its ambitious plans for the future.

While InnoStar has been relatively discreet about the specifics of its ReRAM technology, the company offers licensable intellectual property (IP) for integration into System on Chips (SoCs). Additionally, the technology can be utilized for storage memory purposes and AI acceleration in data centers, showcasing the versatility and potential applications of InnoStar's innovations.

Although the exact financial details of the investment remain undisclosed, reports suggest that ByteDance now holds the position of the third-largest shareholder in InnoStar. This places ByteDance behind Memris Asia Pacific (28.8 percent) and Shanghai Alliance Investment (26.3 percent) in terms of ownership stakes. The move signifies ByteDance's growing interest in the tech sector and its strategic positioning within the competitive landscape.

Industry analysts view this investment as a crucial step in ByteDance's broader strategy to establish a foothold in the VR headset market, where it aims to rival established players like Oculus and Apple. By leveraging the technological expertise of InnoStar and integrating their memory chips into Picoheart's VR headsets, ByteDance is poised to enhance its offerings and provide consumers with innovative and immersive experiences in the virtual reality space.