Artificial intelligence (AI) chip start-up Biren Technology has begun its initial public offering (IPO) process in China, with Guotai Junan Securities as its advisor. Based in Shanghai, Biren was valued at approximately US$2.19 billion in November 2022, according to Pitchbook.

The IPO preparation process, a regulatory requirement in China, typically lasts three to 12 months. However, details regarding the planned IPO’s location and fundraising target remain undisclosed by Biren and the China Securities Regulatory Commission (CSRC).

Biren’s move reflects broader trends in the integrated-circuit industry, leading to the emergence of multiple unicorns over the past three years, according to Great Wall Strategy Consultants. Notably, rival Enflame has also begun the IPO preparation process, indicating a rising interest among Chinese chip designers in accessing public capital.

Despite this growth, concerns have emerged about the industry’s increasing reliance on state-backed investments, echoed by industry expert Fang Fenglei. Biren Technology has raised over US$780 million through eight funding rounds, with notable investment from the venture capital firm HongShan.

Following its placement on a US trade blacklist last year, the company has sought increased support from the Chinese government. This designation has hindered its relationships with leading semiconductor manufacturers, including Taiwan Semiconductor Manufacturing Company, affecting its chip production capabilities.

Founded in 2019 by Zhang Wen, Biren competes with other Chinese graphics processing unit (GPU) developers. This environment has been shaped by restrictions imposed on advanced chip exports from Nvidia and Advanced Micro Devices (AMD) to China.

In August 2022, Biren launched its BR100 GPU, which the company claimed achieved notable advancements in computing power. However, the BR100 is no longer listed on the company’s website, with production currently centered on the Bili GPU series, which is now in mass production.