China’s Nexchip Semiconductor is planning to raise up to HK$6.98 billion ($890 million) through a share sale in Hong Kong as the company expands its semiconductor business and strengthens its artificial intelligence (AI) chip capabilities.
According to the company’s Hong Kong Stock Exchange filing, Nexchip will offer 216.2 million H shares at a maximum price of HK$32.30 per share. Trading of the shares is expected to begin on July 10, making it one of the latest Chinese technology companies to tap Hong Kong’s active capital market.
Nexchip said it will use about 53.6% of the funds raised for research and development (R&D) and to improve its 22-nanometre (22 nm) semiconductor technology platform. The company also plans to invest part of the proceeds in AI-based production initiatives, reflecting the growing demand for artificial intelligence and advanced chip manufacturing.
The fundraising comes as several Chinese technology companies seek fresh capital in Hong Kong. Strong investor interest in AI and semiconductor companies has helped drive a wave of large public offerings in recent months.
Despite its expansion plans, Nexchip warned in its official filing that net profit in 2026 is expected to be lower than the previous year. The company said this is mainly due to higher depreciation costs from its new production facility, which will affect short-term earnings as manufacturing capacity increases.
The prospectus also revealed that Chery Automobile’s investment unit will participate as a cornerstone investor, committing to purchase shares before the public listing.
Nexchip’s planned IPO highlights China’s continued investment in semiconductor technology and AI development while using Hong Kong’s capital markets to support long-term growth.
