Key Takeaways:
Hefei Nexchip Semiconductor Corp., China’s third-largest chip foundry, has filed for an initial public offering on the Hong Kong Stock Exchange to help finance a new $5.1 billion wafer fabrication plant.
The application, filed with the exchange on March 31 with CICC as the sole sponsor, outlines a dual listing alongside the company’s existing shares in Shanghai, according to exchange documents.
Proceeds are earmarked for Nexchip’s Phase IV project in Hefei, a 35.5 billion yuan ($5.1 billion) investment that will add a 12-inch wafer line with a monthly capacity of 55,000 wafers. The company’s revenue in 2025 reached 10.89 billion yuan ($1.58 billion), a 17.7 percent year-on-year increase.
The listing seeks to tap international capital for Nexchip’s push into more advanced 28-nanometer production, positioning it to compete for contracts for AI-enabled smartphones and smart vehicles.
The proposed ticker and specific amount to be raised were not yet disclosed. The new fab will focus on 40nm and 28nm nodes, a significant step up from the company’s prior focus on 55nm to 150nm mature processes. Nexchip announced it had completed development of its 28nm logic platform on March 11, a key milestone for capturing higher-value manufacturing orders.
Nexchip joins a stampede of mainland Chinese technology companies turning to Hong Kong for capital as US export controls restrict access to cutting-edge equipment. Foundries are instead pouring investment into mature nodes used in the vast majority of electronics. Competitors SMIC and Hua Hong Semiconductor have also recently raised prices and expanded capacity, consolidating their hold on the sector.
Established in 2015 as a joint venture with Taiwan’s Powerchip Technology, Nexchip is primarily controlled by Hefei’s state-owned investment holding, which held a 39.7 percent stake as of September 2025. The company’s 2025 net profit rose 32 percent to 704 million yuan.
The offering will test international investor appetite for China’s semiconductor self-sufficiency drive. A successful listing at a favorable valuation would provide a blueprint for other mainland firms, while first-day trading will serve as a key barometer of demand.
This article is for informational purposes only and does not constitute investment advice.
