Nexchip Semiconductor Corporation started trading on the Hong Kong Stock Exchange on July 10, raising approximately $890 million in what amounts to one of the largest chip industry listings this year. The Chinese foundry priced 216.2 million shares at HK$32.30 each, landing at the top of its expected range.
The deal and where the money goes
The offering generated roughly HK$6.98 billion in total proceeds. More than half of that capital is earmarked for research and development, with a particular focus on optimizing Nexchip’s 22-nanometer process technology and AI-powered systems integration.
The R&D allocation alone exceeds HK$3.5 billion. Nexchip is also building a new manufacturing facility in Hefei, China, with a price tag of $5.1 billion. The Hong Kong listing proceeds will help fund a portion of that expansion, which is designed to significantly scale the company’s production capacity.
Nexchip already trades on the Shanghai Stock Exchange, making this a dual-listing play. The Hong Kong leg gives the company access to international capital pools that are increasingly difficult for Chinese semiconductor firms to tap through other channels.
