(July 10): Nexchip Semiconductor Corp jumped as much as 14% on Friday after raising US$891 million (RM3.63 billion) in a share sale, showing the appetite for Chinese chipmakers after a deluge of offerings in the artificial intelligence (AI) industry.

The Hefei-based wafer foundry sold 216.2 million shares at HK$32.30 (RM16.79) apiece, the maximum offer price. The pricing represents a 57% discount from the closing price of 65.21 yuan (RM39.08) for its Shanghai-listed stock on Thursday. The onshore stock dropped as much as 12% on Friday.

Hong Kong equity fundraising has been booming this year, driven by a wave of Chinese technology companies selling shares. First-time offerings have raised more than US$30 billion so far in 2026, nearing the 2025 total of US$36.8 billion, which was a four-year high, data compiled by Bloomberg show. The Nexchip deal is among the 10 largest first-time offerings in Hong Kong so far this year.

Founded in 2015 as a joint venture between government-backed investors in Hefei province and Taiwan’s Powerchip Semiconductor Manufacturing Corp, Nexchip has grown to become China’s third largest pure-play foundry by revenue, trailing industry giants such as SMIC and Hua Hong in the domestic market, and the ninth-largest globally. The company specialises in manufacturing chips designed by third parties rather than developing its own semiconductors, and focuses on mature-node manufacturing, with foundry services spanning process technologies from 150 nanometers (nm) to 40nm. 

Proceeds from the listing will primarily fund technology upgrades. More than half has been earmarked for research and development and the optimisation of a next-generation 22nm platform, while roughly a quarter will be invested in AI-enabled research and manufacturing initiatives. The company also plans to establish an R&D and sales centre in Hong Kong.

Other high profile names coming to the market include optical transceiver maker Zhongji Innolight Co, and Baidu Inc’s AI chip unit Kunlunxin. 

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