TECH

Satellite Chipmaker Cygnus Raises $215 Million as China Internet-in-Space Push Accelerates

Published: Feb. 7, 2026 12:56 a.m. GMT+8

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Cygnus has secured a strategic foothold by winning a bid to develop second-generation satellite baseband chips. Photo: VCG

Shanghai Cygnus Semiconductor Co. Ltd., a developer of satellite baseband chips, has raised nearly 1.5 billion yuan ($215 million) across multiple funding rounds over the past six months, underscoring a surge in capital interest toward China’s burgeoning satellite internet sector.

This capital injection highlights how investors are actively positioning themselves around Beijing’s mandate to connect 10 million users to satellite networks by 2030, fueling a race to build out the hardware ecosystem necessary for massive orbital constellations.

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Shanghai Cygnus Semiconductor raised nearly 1.5 billion yuan ($215 million) since late 2024, driven by investor interest in China’s satellite internet sector.
The company’s valuation rose after a 2024 “capital winter,” with Cygnus now supplying both first- and second-generation satellite baseband chips and reporting a 141 million yuan net loss in H1 2025.
China’s satellite internet industry is accelerating, with more satellite launches projected for 2026 and Cygnus investing over 2 billion yuan in related technologies.

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Who’s Who

Shanghai Cygnus Semiconductor Co. Ltd.: Shanghai Cygnus Semiconductor Co. Ltd., founded in 2020 by former Huawei executive Xia Lusheng, develops satellite baseband chips. It has raised nearly 1.5 billion yuan across multiple funding rounds, with its valuation significantly increasing since 2024. The company pivoted from 5G to satellite applications in 2023, is the sole supplier for both first and second-generation satellite baseband chips and is poised to benefit from China's expanding satellite internet sector.

Orinno Capital: Orinno Capital (和沄资本) co-led Cygnus Semiconductor's Series B+ funding round, which is part of nearly 1.5 billion yuan ($215 million) raised by Cygnus over the past six months. This investment highlights Orinno Capital's participation in China's burgeoning satellite internet sector, aligning with Beijing's goal to connect 10 million users to satellite networks by 2030.

Hengqin IDC: Hengqin IDC (横琴发展有限公司) co-led Cygnus Semiconductor's Series B+ funding round, showcasing investor interest in China's satellite internet sector. This investment aligns with Beijing's goal to connect 10 million users to satellite networks by 2030, supporting the development of a hardware ecosystem for massive orbital constellations.

Essential Capital: Essential Capital, also known as 雅湛资本, co-led the Series C funding round for Shanghai Cygnus Semiconductor Co. Ltd. This investment highlights their participation in the burgeoning satellite internet sector in China, which has seen significant capital interest since early 2025.

Shanghai Pianxuan Private Fund Management Co. Ltd.: Shanghai Pianxuan Private Fund Management Co. Ltd. is an investor in Shanghai Cygnus Semiconductor Co. Ltd. They co-led Cygnus's Series C funding round, contributing to the nearly 1.5 billion yuan ($215 million) raised by Cygnus over the past six months. This investment highlights their participation in China's rapidly growing satellite internet sector.

Anhui Landun Photoelectron Co. Ltd.: Anhui Landun Photoelectron Co. Ltd. (安徽朗顿光电股份有限公司) acquired a 5.09% stake in Shanghai Cygnus Semiconductor Co. Ltd. for 180 million yuan in April 2024. This investment implied a valuation of approximately 3.5 billion yuan for Cygnus at that time. Landun later terminated a planned additional investment of 80 million yuan due to its own business losses.

China Satellite Network Group: China Satellite Network Group is a major operator in China's satellite internet sector. It is a state-owned enterprise, and according to Caixin, it is one of the main operators planning a significant increase in satellite launches in 2026, far exceeding 2025 levels.

Dongxing Securities: Dongxing Securities believes 2025 marked the beginning of accelerated networking and industrialization for China's satellite internet. This system is dominated by state-owned enterprises but also receives support from the private sector. Analysts at Dongxing Securities anticipate a significant increase in satellite launches by major operators in 2026 compared to 2025.

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What Happened When

2020：: Cygnus was founded by former Huawei Technologies executive Xia Lusheng, initially focusing on 5G baseband chips.

2023：: Cygnus pivoted its business to satellite applications.

April 2024：: Cygnus raised more than 500 million yuan in Series B round; Anhui Landun Photoelectron Co. Ltd. acquired a 5.09% stake for 180 million yuan, implying a valuation of about 3.5 billion yuan at that time.

2024：: Cygnus faced a difficult investment environment due to a 'capital winter' in the chip sector and posted operating losses, with a pre-money valuation suppressed to about 3 billion yuan.

July 2024：: Landun Photoelectron made its investment in Cygnus, with plans to spend an additional 80 million yuan to acquire more shares from a third-party shareholder (which did not proceed later).