Yangtze Memory Technologies (YMTC)' parent company, Changjiang Storage Technology Holdings Co., Ltd. (Changjiang Holdings), has completed a major funding round, raising approximately CNY 9.42 billion (USD 1.3 billion) and adding 16 new investors. The company's post-funding valuation is now estimated at CNY 161.6 billion (USD 22.1 billion).

One of the most unexpected participants in this round was Hebei Yangyuan Zhihui Beverage Co., Ltd. (Yangyuan Beverage), a leading Chinese plant-based beverage producer. Through its investment arm, Wuhu Wenming Quan Hong Investment Partnership, Yangyuan Beverage invested CNY 1.6 billion in Changjiang Holdings, securing a 0.99% stake. The beverage company stated that the move aligns with its strategy to explore equity investment models and diversify its business, although it acknowledged potential risks due to semiconductor market volatility.

The investment has drawn significant attention not only because of Yangyuan Beverage's cross-sector leap but also due to the importance of Changjiang Holdings, the parent company of China's leading NAND flash maker YMTC. Following this financing, Changjiang Holdings' registered capital increased by CNY 6.54 billion to CNY 111.8 billion.

In addition to Yangyuan Beverage, a range of major investors joined the round, including Agricultural Bank of China, China Construction Bank, Bank of Communications, and Bank of China financial investment arms, as well as several state-owned and market-oriented capital firms.

Changjiang Holdings, founded in 2016, is a critical player in China's memory chip industry. Beyond YMTC, it controls several key subsidiaries, including Wuhan Xinxin Semiconductor Manufacturing (XMC), which is currently progressing toward a listing on Shanghai's STAR Market, and Hongmao Microelectronics, a semiconductor packaging and testing firm.

Financial disclosures show that Changjiang Holdings had total assets of CNY 134.7 billion as of the end of the third quarter in 2024. However, the company reported a net loss of CNY 84.2 million during the same period, compared to a net profit of CNY 531 million in 2023. It's important to note that these figures only cover the parent entity and do not fully reflect the financial performance of its subsidiaries like YMTC.

Meanwhile, the broader memory market is showing signs of recovery. Driven by surging computing demand, domestic substitution, and the AI revolution, memory prices have started to rebound. Research firm TrendForce recently projected that memory contract prices could see a larger-than-expected increase in the second quarter of 2025, though warned the momentum might be short-lived and dependent on evolving global dynamics.

Yangyuan Beverage's strategic investment represents a bold attempt by a traditional consumer goods company to capture opportunities in China's rapidly growing semiconductor sector. Whether this cross-sector move will yield synergistic benefits remains to be seen, but it reflects a broader trend of capital diversifying into high-tech industries amid global supply chain shifts.