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Hefei合肥

Tier 2 - Major City

China's most celebrated example of government-as-venture-capitalist. Hefei made strategic bets on display panels (BOE), EVs (NIO), and quantum computing that transformed it from a backwater into a tech powerhouse.

GDP

$165B

2023

Population

9.47M

residents

Industry Output

¥315B

all sectors combined

Sectors Active

3

frontier tech sectors

Key Facts

  • Government invested early in NIO, saving the EV company from bankruptcy
  • BOE's largest display panel production base
  • Hosts the National Lab for Quantum Information Sciences (USTC)
  • GDP growth rate has been among the fastest of any major Chinese city

Major Companies

NIO

蔚来

NIO

Premium EV brand known for battery swap technology, HQ relocated to Hefei after government rescue investment.

EVs & NEVs

Founded 2014

China's only DRAM manufacturer, producing DDR4 and developing DDR5 memory chips.

Semiconductors

Founded 2016

Origin Quantum

本源量子

China's first quantum computing startup, spun out of USTC, developing superconducting quantum processors and quantum cloud services.

Quantum Computing

Founded 2017

World's largest display panel manufacturer, with its most advanced Gen-10.5 LCD and OLED production lines in Hefei.

Advanced Materials

Founded 1993

History & Context

Hefei was a relatively unremarkable provincial capital until the 2000s, when its government adopted an aggressive investment strategy. The city bet big on the display panel industry, luring BOE and other flat-panel manufacturers with generous incentives. When NIO, the EV startup, was running out of cash in 2020, Hefei's government invested ¥7 billion, landing NIO's headquarters and manufacturing base. The University of Science and Technology of China (USTC), located in Hefei, has made the city a global center for quantum computing research.