300 Million RMB Raised by SINSEGYE for iComputer Innovation in Series A and Series A+ Financing

SINSEGYE, an iComputer provider, has successfully funded 300 million RMB in Series A and Series A+ round a few months ago. In the A round, SINSEGYE raised 200 million yuan. Tianjin Venture Capital was the lead investor, followed by CAS Capital, Guozhong Private Equity Investment Fund (Xi'an)Partnership, Cornerstone Fund, New Value Capital. Existing investors, such as GreatOrigin Asia Capital, Lenovo Capital, CowinCapital, as well as the initial shareholder continued to invest. In the A+ round, SINSEGYE obtained 100 million RMB financing. The lead investor was Bojiang Capital, followed closely by SIAT Capital, and Yue Capital acted as the exclusive financial advisor. Founded in August 2022, SINSEGYE has completed five rounds of financing within a year. The company's founder, Dr. Ma Jun, stated that this round of financing will be used to strengthen investments in automation (operating systems and IDE), PC products, and servo Motion, as well as to expand into domestic and international markets.

SINSEGYE focuses on developing iComputer with the aim of achieving industrial automation and intelligence based on PC technology (a type of computer architecture) and software-defined technology. The technological originator of this iComputer is Sun Ninghui, an academician at the Chinese Academy of Engineering and the former director of the Institute of Computing Technology at the Chinese Academy of Sciences. He proposed a technology system that integrates iComputer with software-defined technology, aiming to transform the current industrial computing market landscape dominated by traditional PLCs (Programmable Logic Controllers), motion controllers, industrial computers, and edge servers. The core product development members at SINSEGYE come from the Institute of Computing Technology (ICT) at the Chinese Academy of Sciences, Alibaba, Beckhoff, Baidu, B&R, Siemens, Phoenix Contact, KEBA, Schneider Electric, Lead Intelligent, Inovance Technology, Dongtu Technology, Weihong Electronics, Lingyun Optical, Holux, Sugon, Lenovo, NIO, and Li Auto. Most team members have over 15 years of experience in chip and hardware, virtualization and operating systems, and automation and motion control fields.

With the widespread application of vision and artificial intelligence in mobile phones, automobiles, and other fields, the manufacturing sector has higher requirements for the computing capabilities of computers. Consequently, the core of industrial computers is shifting from traditional controllers to industrial intelligent computers. SINSEGYE’s iComputer integrates all functions of the existing automation ecosystem, including PLCs, industrial computers, motion controllers, motion control cards, industrial gateways, and edge servers. Besides, It also provides a combined solution of Unified Hardware plus Intelligent Software.

SINSEGYE has successfully launched five PC products. The Automation 2.0 operating system has achieved performance levels comparable to Beckhoff, reaching the highest standards in the industry. Additionally, SINSEGYE has introduced products such as I/O terminals, servo drives, motors, and host computer software. In short, SINSEGYE offers its customers a flexible portfolio of PC-driven, automation-centric products supported by I/O, motion, acceleration and digitization.

Compared with the traditional products, the PC architecture solutions such as SINSEGYE, Beckhoff, B&R, and Bachmann have four advantages:

Firstly, PC architecture solution has excellent performance. The motion control in PC architecture products stands out with its high speed, exceptional precision, and minimal jitter. In comparison to traditional modular architectures, SINSEGYE's PC controller processes data at a speed that is one to two orders of magnitude faster. This swift computation allows for more accurate mechanical movements, achieving response times of under 50 microseconds.

Secondly, the cost is lower. In traditional equipment, PLCs and motion controllers are responsible for execution, while industrial computers handle calculations, resulting in separate systems. SINSEGYE streamlines this by integrating a hybrid kernel, type one virtualization, and dual-domain operating systems into a single machine, which can reduce hardware costs by 50% or even more.

Thirdly, more open in programming. With traditional equipment, it is common for users to engage multiple machines, utilize a distinct programming language, and accomplish various tasks. In contrast, SINSEGYE retains a consistent programming language, enabling the development of industry algorithms and applications on a single, unified platform.

Fourthly, it is more reliable. SINSEGYE combines real-time and non-real-time domains, implementing a dual-domain operating system mechanism that addresses users' concerns regarding blue screens and system freezes.

According to SINSEGYE, its products currently have PC performance that is closest to the German brand Beckhoff. SINSEGYE has secured bulk orders from benchmark clients in advanced manufacturing (semiconductors, lasers, 3C electronics), new energy (photovoltaics, wind power), and process industries (oil, steel). Notably, over 95% of the electronic components in the SINSEGYE SX20 series iComputer’s motherboard are domestically produced, including the use of HYGON 3rd generation CPU chips and Cambricon graphics cards for artificial intelligence processing.

Ma Jun remarked that computerized automation presents a tremendous opportunity for industrial advancement, akin to the leaps made by cloud computing, smartphones, and smart cars, all of which have undergone significant computerization. Key factors in this transition include user-friendly programming, high-performance terminals, and innovative operating systems. SINSEGYE's mission is to create an open and collaborative PC automation industrial system that promotes “applicability across industries while breaking the monopoly of foreign brands."

In terms of production capacity and market aspects, SINSEGYE has signed a strategic cooperation agreement with Lenovo Group's Southern Intelligent Manufacturing Base, becoming the first seed customer of the “Bright Plan.” (On May 6, 2023, Lenovo Group officially launched the flexible manufacturing "Bright Plan" at the large-scale production ceremony of the Southern Intelligent Manufacturing Base, which was jointly initiated by Lenovo Group and Lenovo Capital.) Leveraging Lenovo's rich experience in intelligent manufacturing, high production efficiency, and diversified services, SINSEGYE is expected to gain significant advantages in supply chain and globalization in the future. Regarding customer progress, the company has already gained recognition from numerous new clients in advanced manufacturing, new energy, and process industries, including companies such as Lead Intelligent, Lingyun Optoelectronics, Huawei, BYD, TBEA, Highview Solar, Sanan Optoelectronics, and State Power Rixin.

Investment Perspective:

[Tianjin Venture Capital] Hong Lei, the managing partner of Tianjin Venture Capital, stated: “China’s industrial control has long been limited by foreign manufacturers, especially in the mid-to-high-end product range. The introduction of SINSEGYE presents a significant opportunity to address the persistent bottleneck issues, and more importantly, it aims to fundamentally transform the industrial control system. While this is indeed a formidable challenge, the potential rewards for China as a major manufacturing power make it even more promising. Tianjin Venture Capital has had over a decade of collaboration with the Institute of Computing Technology at the Chinese Academy of Sciences, having invested in companies like Sugon, HYGON, SINSEGYE, and XCORE SIGMA. We have great respect for the technological foundation of the Institute of Computing Technology. The founding team of SINSEGYE boasts extensive experience in product development and has built a team with valuable hands-on experience in the industrial sector. For these reasons, we are committed to leading this round of investment. Going forward, we will actively seek to leverage our strengths to support the growth of SINSEGYE."

[CAS Capital] CAS Capital stated that in the era of Industry 4.0, the demand for strong computing power, high precision, and high reliability presents broad development opportunities for PC-based control technology. The SINSEGYE team originates from the Institute of Computing Technology at the Chinese Academy of Sciences, and the company is focused on building an “integrated computing and control” iComputer, which empowers the infrastructure for Chinese manufacturing, promoting the upgrade of intelligent manufacturing. In terms of iComputer products, SINSEGYE has developed various types, including rack-mounted systems and embedded systems. This achievement occurred within just over a year since the SINSEGYE’s establishment. Moreover, the product matrix supports domestic underlying computing power chips. We look forward to seeing SINSEGYE maintain its commitment to in-depth research and development and a down-to-earth approach, keeping pace with the banner of “Made in China.”

[Guozhong Private Equity Investment Fund (Xi'an)Partnership] Shi Xin, the Executive General Manager of Guozhong Private Equity Investment Fund (Xi'an) Partnership, stated that industrial intelligence is crucial for achieving the goal of becoming a strong manufacturing nation. The intelligent integrated computing and control system is essential for achieving industrial control intelligence. It holds significant market potential, making it a critical area of technology. Leveraging the resources of the Institute of Computing Technology at the Chinese Academy of Sciences, SINSEGYE has become one of the few companies to pioneer the implementation of a fully domesticated solution for integrated computing and control in the domestic industrial control sector. SINSEGYE has adopted a PC architecture solution to reshape industrial control systems, using a new integrated computing and control model that surpasses various traditional industrial control architectures in production control. This approach realizes “software-driven industrial control,” enhancing the precision and efficiency of industrial control. The Guozhong Private Equity Investment Fund (Xi'an) Partnership believes in the potential of intelligent industrial control and iComputer, as well as SINSEGYE's technological strength and product direction. With opportunities from upgrading industrial control technology and domestic substitution, SINSEGYE is poised to lead the rapid development of industrial intelligence in China, achieving breakthroughs and innovations with support from various resources.

[Cornerstone Fund] Qin Shaobo, a partner at Cornerstone Fund, stated that the rapid development of information technology extends beyond the internet, impacting various industries. For over a century, the industrial control sector has had a market size exceeding hundreds of billions. Now, the industry is undergoing a transformation and the integration of industrial control and information technology tend to be one of the key directions for the future. As one of the few domestic manufacturers and service providers of industrial intelligence, SINSEGYE is well-positioned in this context. The team consists of outstanding talents proficient in computer algorithms and industrial control, which will undoubtedly secure a place for them in the industrial control field.

[New Value Capital] Peng Qikang, the project leader at New Value Capital, pointed out that while there are many manufacturers producing traditional PLCs in China, there are very few that have ventured into PC architecture. Ma Jun and his outstanding team's dedication to research and development, along with their pragmatic approach, is truly admirable. SINSEGYE leverages domestically produced hardware incubated by the Chinese Academy of Sciences and perfectly integrates it with the Codesys Runtime compilation environment. This, combined with a vast library of algorithms and the robust solutions offered by its ecosystem, has garnered the attention of numerous clients and automation engineers. SINSEGYE transcends traditional PLCs by focusing on creating a safe and controllable hardware-software integrated model that addresses customer needs and tackles challenging issues. We firmly believe that the company's products will penetrate various industrial digitalization scenarios, leading the trend of “industrial computing automation.”

[GreatOrigin Asia Capital] Lin Haizhuo, founding partner and CEO of GreatOrigin Asia Capital, said: “The core R&D team at SINSEGYE has the most extensive experience in developing industrial supercomputing platforms in China and is also the most mature team in terms of commercial products.We are optimistic about SINSEGYE's iComputer, which combines computing and control, hardware and software. We believe that SINSEGYE will become a global leader in the integration of hardware and software at the heart of computational manufacturing in industrial production.”

[Lenovo Capital] Song Chunyu, Vice President of Lenovo Group and Partner at Lenovo Capital, stated that SINSEGYE, as a portfolio company of Lenovo Capital and a sister organization of the Institute of Computing Technology at the Chinese Academy of Sciences, adheres to the three principles of "fundamental, strategic, and forward-looking" established by the Institute. Guided by the national 14th Five-Year Plan, SINSEGYE is leveraging IT and OT as its technical pathways to break the foreign monopoly in automation brands and develop computable manufacturing solutions centered on industrial intelligent computing, thereby accelerating the smart transformation of the manufacturing industry. As seed and angel investors, Lenovo Capital is highly optimistic about the team's commitment to this direction and is pleased with the significant progress the company has made in just over a year. Moving forward, Lenovo Capital will continue to support SINSEGYE’s development in various ways.

[CowinCapital] Zhang Xin, the head of Cowin Capital's Digital Economy Fund, believes that since the establishment of SINSEGYE in August 2022, the team has not only completed multiple rounds of financing but also actively recruited talent to build a strong R&D and marketing team. SINSEGYE has ensured stable product shipments, and in the third quarter, has already recorded a significant number of large-scale repurchase orders from KA clients indicating promising performance for this year.This demonstrates that SINSEGYE has successfully accomplished the 0-1 stage of development. Amid challenges in the investment landscape, SINSEGYE's ample financial reserves position it well for the next phase of growth from 1 to 100.

[Bojiang Capital] Lu Yuanhao, Bojiang Capital project manager, stated that SINSEGYE is currently at a favorable circumstances, as national policies have elevated the construction of self-controllable industrial infrastructure to an unprecedented new height. Meanwhile, during the transformation and upgrading of the manufacturing industry, traditional industrial frameworks can no longer meet the demands of high-end manufacturing.With years of technology development at the Institute of Computing Technology, Chinese Academy of Sciences behind them, SINSEGYE has brought together top talent from leading industrial automation companies from both China and abroad, embracing a 'leapfrog' strategy. SINSEGYE seamlessly integrates PLC, operational control, vision, and AI, while also supporting domestic chips and operating systems. They've developed their own IDE to create a new kind of integrated computing and control machine. This innovative approach is key to breaking through bottlenecks in industrial infrastructure and driving the transformation and upgrade of the manufacturing industry.