- Hefei startup will use proceeds to advance China’s first quasi-isodynamic stellarator program
- Funding caps a surge of fusion investment as multiple Chinese startups race toward commercial fusion
Xinghe Fusion (星核聚变), a Chinese nuclear fusion startup developing quasi-isodynamic (QI) stellarator technology, has raised 830 million yuan ($122 million) in its first funding round, setting a domestic record for an inaugural financing by a privately owned fusion company.
The round values the Hefei-based startup at nearly 3 billion yuan post-money and was backed by a consortium of 24 investors, including venture capital firms, state-backed funds and listed industrial companies, underscoring growing investor appetite for next-generation fusion technologies.
A long roster of backers
SAIC’s venture arm Hengxu Capital, Shenzhen Capital Group and CAS Star acted as the lead investors, with participation from Chaos Investment, Puhua Capital, Loongson Technology’s venture unit and Legend Star.
Alongside these market-oriented players, the financing also drew participation from local state-backed investors including Hefei Innovation Investment and Hefei High-tech Investment, as well as listed companies including Zijin Mining and Zhongding Group.
QI stellarator
Founded in November 2025 by Dong Wei, a Fudan University alumnus, Xinghe Fusion is China’s first startup dedicated to the quasi-isodynamic stellarator approach, one of the world’s most advanced magnetic confinement fusion concepts.
Unlike the better-known tokamak, which relies partly on large plasma currents to sustain magnetic confinement, a stellarator generates its magnetic field entirely through complex external three-dimensional coils.
The design reduces plasma instability and is widely regarded as a promising route toward continuous, steady-state fusion power generation.
Leveraging Hefei’s network
The company has built its R&D platform around superconducting stellarator technology, AI and advanced 3D manufacturing, leveraging Hefei’s concentration of major fusion research facilities.
These include Experimental Advanced Superconducting Tokamak (EAST), Comprehensive Research Facility for Fusion Technology (CRAFT) and Burning plasma Experimental Superconducting Tokamak (BEST), alongside an industrial ecosystem of nearly 70 fusion-related companies.
Proceeds from the financing will primarily fund the development of the company’s Xinghe-0 experimental device, which aims to achieve its first plasma discharge by the end of 2026 and ultimately sustain plasma operation for hours—or even continuously for 24 hours.
Construction of its next-generation Xinghe-1 device is scheduled to begin in early 2027.
Spike in fusion-related funding
The fundraising comes amid a sharp rise in investment into China’s private fusion sector.
Since June alone, startups including National Fusion, UniFusion, Xeonova, SunUp Fusion and SuperMag Energy have all announced sizable financing rounds, reflecting growing confidence that fusion is moving from scientific research toward commercial development.
The latest deal also strengthens Hefei’s position as one of China’s leading fusion hubs. The city now hosts companies pursuing all three major magnetic confinement approaches—tokamak, field-reversed configuration (FRC) and stellarator—creating one of the world’s most comprehensive fusion innovation clusters.
