Key facts
- China's Nexchip debuted on the Hong Kong Stock Exchange on July 11, 2026.
- The company aims to raise up to HK$6.98 billion (approximately $890 million) through its listing.
- Nexchip is the world's eighth-largest semiconductor foundry and China's third-largest.
- The company specializes in mature-node chips essential for automotive, industrial, and consumer electronics.
- Nexchip is investing 35.5 billion yuan ($5.1 billion) in a new facility in Hefei.
- The expansion will focus on 28nm and 40nm nodes, with plans for 22nm technology development.
China's Nexchip, the world's eighth-largest semiconductor foundry, made its debut on the Hong Kong Stock Exchange on July 11, 2026. The company has built its success on manufacturing older-generation, or mature-node, chips, which are essential components for vehicles, industrial equipment, and consumer electronics. This listing marks a significant step in Nexchip's global ambitions and its expansion plans.
The company is seeking to raise up to HK$6.98 billion, approximately $890 million, to fund a substantial factory expansion. This includes a 35.5 billion yuan ($5.1 billion) investment in a new Phase IV facility in Hefei, designed to produce 55,000 wafers per month at 28nm and 40nm nodes. A significant portion of the funds raised will also be directed towards developing its 22nm technology platform.
Nexchip's focus on mature-node chips comes as the global semiconductor industry navigates U.S. export restrictions on advanced chips used for AI and defense. While China has been investing heavily in chip self-reliance, progress in cutting-edge technologies remains a challenge, with experts noting a lag in research, design, and innovation compared to global leaders like the U.S., Taiwan, and South Korea. However, China has captured a substantial share of the global market for legacy chips, raising concerns among competitors about potential price pressures.
Founded in 2015 as a joint venture between Hefei City's government investment arm and Taiwan's Powerchip Technology Corporation, Nexchip has achieved rapid growth in capacity and revenue. The company has successfully developed a 28nm logic chip platform, a notable advancement from its previous focus on 55nm to 150nm nodes.