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Chinese chip foundry Nexchip eyes Hong Kong dual listing
Nexchip Semiconductor, a Hefei-based chip foundry, has filed for a Hong Kong listing as it seeks funding to expand capacity amid rising AI-related demand and China’s push for chip self-sufficiency.
The company is seeking a Hong Kong listing to complete a dual listing after a previous Hong Kong IPO application filed last September lapsed after six months.
Nexchip, founded in 2015, mainly makes mature-node chips on 12-inch wafers in the 150 nm to 40 nm range, and said it is moving toward 28 nm logic for AI and automotive supply chains.
Frost & Sullivan ranked Nexchip ninth globally by foundry revenue and third in mainland China in 2025, while industry group Semi data show China’s share of 22 nm to 40 nm wafer capacity is expected to hit 42% by 2028, with 47 of 108 new fabs built in China.
🔗 Source: South China Morning Post
🧠 Food for thought
Implications, context, and why it matters.
Nexchip’s listing faces regulatory scrutiny amid an aggressive price war
- Nexchip’s listing may look routine, yet China’s securities regulator is reviewing the legality of past equity changes. Regulators also asked Nexchip to explain approval steps for using raised funds in overseas investments 1.
- The fundraise lands during a mature-node price fight. Industry reporting cited by Rhodium Group (a research firm that analyzes global economic and geopolitical risks) says SMIC, Hua Hong, and Nexchip pulled customers from GlobalFoundries, PSMC, and Samsung by offering lower pricing. Foreign rivals responded with 10% to 30% price cuts 2.
- More A-share (Shanghai- and Shenzhen-listed) Chinese semiconductor firms are also seeking Hong Kong listings. The group includes OmniVision and GigaDevice, aiming to tap global capital and pay for growth plans 3.
The expansion signals a global mature-node supply surge and a Western policy dilemma
- Nexchip plays a central role in a large capacity buildout that could give China 39% of global legacy (mature-node) chip manufacturing capacity by 2027 2.
- More supply could deepen worldwide price pressure, squeezing foundries that make chips used in cars, home appliances, and industrial electronics 4.
- Western governments face a policy bind. U.S. officials have said they have “no interest” in widening export restrictions to mature/legacy chips, citing narrow national-security-focused controls and concerns about supply chain resilience 5.
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