Baidu’s artificial intelligence chip subsidiary Kunlunxin (Beijing) Technology has confidentially applied for an initial public offering (IPO) in Hong Kong, as the search and AI giant becomes the latest to join an investment frenzy amid China’s drive for tech self-reliance.
The Kunlunxin prospectus was submitted on Thursday but details such as the size and structure of the IPO had not yet been finalised, Baidu said in a statement on Friday.
“The US tech blockade has made it even more urgent for China to move quickly up the value chain, build indigenous production capability and secure the first-mover advantage in AI,” said Gary Cheuk-yan, senior economist at Natixis Corporate and Investment Bank.
Ng said he saw stronger investor appetite for China’s national tech champions amid the country’s drive for self-reliance, which was helping chip firms gain a higher valuation.
Last year, 20 Chinese semiconductor IPOs raised over 45 billion yuan (US$6.4 billion), with six of them listing in December, according to market data provider CVSource. The entire chip industry raised over 185 billion yuan across 1,419 cases, topping all sectors.
