China’s Nexchip Semiconductor filed in Hong Kong on June 30 to raise up to HK$6.98 billion (US$890.26 million) by offering 216.2 million shares at up to HK$32.30 (US$4.1) each.

Trading in its H shares is expected to begin on July 10.

The Hefei-based company is a chip foundry that manufactures chips for other companies.

Display-driver integrated circuits accounted for 87.84% of Nexchip’s sales in the first half of 2023.

Nexchip said about 53.6% of the proceeds will go to research and development and to optimising its 22-nanometer technology platform.

It also plans to use some of the funds for AI-based production initiatives.

The deal follows a wave of fundraising by Chinese technology companies in Hong Kong, including Apple supplier Luxshare Precision Industry’s planned share sale of up to US$3.1 billion.

The filing also said Nexchip expects lower net profit in 2026 than a year earlier, mainly because of expected depreciation costs from its new production facility.

🔗 Source: Reuters