China under Xi to overcome U.S. restrictions, Chinese chipmakers set for $8 billion IPO: Nikkei Asia

Chinese semiconductor makers, hoping to recover from a market downturn and U.S. export curbs, are expected to raise more than $8 billion in stock listings this year, Nikkei Asia Report.

Expansion in challenge

Hong Kong listed company Hua Hong Semiconductor In early June, the company received approval for a dual listing on Shanghai’s tech-based STAR Market, with the goal of raising 18 billion yuan ($2.5 billion). The company plans to spend $6.7 billion building a factory in Wuxi, with the state-owned China Integrated Circuit Industry Investment Fund investing in the project, Nikkei Asia reported.

See also: As China lures billionaires to run, US aims to thwart Xi Jinping’s AI ambitions

U.S. Restrictions and China’s Response

As the United States considers expanding restrictions on advanced semiconductors for artificial intelligence applications, Chinese chipmakers are stepping up efforts to build their own supply chains. Wei Shaojun, a professor at Tsinghua University, said that even if more Nvidia chips were included in the ban, it could spur further growth in China’s semiconductor industry.

Growth despite sanctions

Although China’s semiconductor market shrank 5 percent last year, sales of domestic chips rose 14 percent. As of mid-June, 13 semiconductor companies have been listed on the RMB exchange this year, raising 42.2 billion yuan. The largest listing so far this year is SMIC (Shaoxing) Co Ltd (SMEC), which raised nearly 10 billion yuan on the STAR Market.

Global Investment in China

Despite pressure led by the United States, global chip companies plan to continue investing in China, the world’s largest market, with a roughly 30 percent share. Nikkei Asia noted that executives from Qualcomm, Intel and ASML visited China this year, demonstrating their commitment to the market.

read also: Nvidia says ban on selling AI chips to China will cost it opportunities in U.S.: WSJ