Photonics, AI chip and memory firms pursue listings

CXMT seeks to raise 6.7 trillion won; YMTC also in IPO pipeline

Beijing pushes tech self-reliance, lowers bar for AI firm listings

[Getty Images]
[Getty Images]

By Seo Ji-yeon, The Herald Business

Riding a wave of AI investment and Beijing's push for semiconductor self-reliance, Chinese chipmakers are racing to go public. The strategy: raise large sums through initial public offerings to expand production capacity and fund research and development, sharpening their technological edge against US export restrictions.

The Shanghai Stock Exchange accepted a preliminary listing application this week from photonics chipmaker XPHOR on its Star Market technology board, according to China's state-run Global Times and other media.

XPHOR plans to raise 2.43 billion yuan ($358 million) through the listing to expand production of silicon photonics chips used in AI computing and data centers, and to invest in next-generation product development and the construction of its own R&D center.

The Shanghai Stock Exchange said it also accepted a listing application from InnoGrit, a designer of storage controller chips.

Last month, AI chipmaker Enflame and 12-inch wafer manufacturer CanSemi cleared listing reviews. The two companies plan to raise a combined 13.5 billion yuan through their IPOs.

The IPO push is also spreading to the memory chip sector.

Yangtze Memory Technologies Corp. (YMTC), China's largest NAND flash maker, and CXMT, its largest DRAM producer — both chasing the memory market led by Samsung Electronics and SK hynix — are each advancing through the listing process.

CXMT in particular plans to raise 29.5 billion yuan, or 6.7 trillion won, through an IPO this year, with the proceeds earmarked for expanding wafer production lines and upgrading its DRAM technology.

AI chipmaker Moore Threads, which listed on the Shanghai exchange in December, has seen its share price surge roughly 500 percent above its IPO price.

The Global Times said the IPO rush reflects both the growth of the AI industry and China's broader strategy of achieving technological self-reliance.

Beijing has been actively supporting fundraising by advanced technology companies.

Wu Qing, chairman of the China Securities Regulatory Commission, said at the Lujiazui Forum last month that authorities would "actively support the listing of companies in core technology fields such as quantum technology, embodied intelligence and biotech manufacturing."

He also outlined a policy of evaluating AI company IPO applications based on long-term growth potential rather than short-term profitability.

Industry analyst Ma Jihua said chipmakers face large upfront capital requirements, making IPOs the most effective way to fund capacity expansion and R&D. "Securing large-scale capital is the key to maintaining long-term competitiveness," he said.


sjy@heraldcorp.com