Chinese chipmaker Hua Hong Semiconductor announced on Sunday its ambitious goal of raising up to 21.2 billion yuan ($2.95 billion) through a listing on the Shanghai stock exchange.
In a statement to the exchange, the country’s second-largest chip foundry revealed its plan to sell 407.75 million shares at a price of 52 yuan per share.
This initial public offering (IPO) by Hua Hong Semiconductor is poised to become the most substantial mainland listing of the year.
The move comes as Chinese chip manufacturers hasten their efforts to secure capital, as Beijing strives for self-sufficiency amid an escalating technology battle with Washington.
With a remarkable 52% increase in revenue in 2022, soaring to a record $2.5 billion, Hua Hong Semiconductor is now keen on expanding the capacity of its 12-inch production line in Wuxi. The company also plans to embark on building new lines.
As China’s chip industry takes center stage in the race for technological supremacy, Hua Hong Semiconductor’s strategic listing aims to strengthen its position in the competitive landscape and contribute to China’s drive for innovation and self-reliance.