Reports are swirling that Nanjing-based chip designer, a leading player in the burgeoning Data Processing Unit (DPU) sector, is facing significant financial distress. Allegations, originating from purported current and former employees, detail a troubling situation that began in March: unpaid salaries, widespread layoffs without compensation, withheld bonuses, and reportedly, differential treatment of employees.
Adding to the gravity of the claims, anonymous accounts allege particularly harsh treatment, including HR personnel making defiant statements, even in the presence of law enforcement. One employee reported being owed the equivalent of over $27,000 in unpaid bonuses and salary.
Founded in 2015, the company focuses on the design, development, and sale of integrated circuit intellectual property (IP), chips, and EDA tools. Their product portfolio includes EDA tools, USB IP, DPU, and TCAM chips.
The company’s 2023 strategic plan to spin off its EDA and DPU operations is likely a significant capital-intensive project. This, compounded by the high R&D costs inherent in the semiconductor industry, is likely creating stress on cash flow. Further indication of financial strain comes from a flurry of equity pledges in April 2024, totaling over $27 million.
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