China’s No. 3 foundry Nexchip files for Hong Kong listing to scale output

Filing signals push for capital as AI-driven demand surges

It has been reported that Nexchip Semiconductor (纳芯半导体) — China’s third-largest contract chipmaker — has filed to list in Hong Kong, seeking fresh capital as domestic wafer fabs rush to expand capacity amid an AI-driven spike in demand. The move, reportedly a dual-listing effort alongside a Shanghai presence, underscores how Chinese foundries are tapping Hong Kong as a fundraising hub while Beijing doubles down on semiconductor self-sufficiency.

Founded in 2015 as a joint venture between the Hefei municipal government and Taiwan’s Powerchip, Nexchip has risen rapidly. Frost & Sullivan ranked the company ninth in the world by foundry revenue in 2025 and third in mainland China behind SMIC (中芯国际) and Hua Hong Semiconductor (华虹半导体). Its Hefei lines are said to be running near full tilt, producing about 139,000 wafers a month and focusing on mature nodes from roughly 150nm down to 40nm.

Geopolitics and market implications

Why does a focus on "older" nodes matter? Mature processes still supply autos, industrial controls and many AI-inference chips — areas where China faces acute demand and where homegrown capacity is a strategic priority given U.S. export controls on cutting-edge equipment and chipmaking tech. Reportedly state-backed and backed by local government capital, Nexchip’s fundraising drive is both commercial and strategic: expand output quickly while less reliant on restricted advanced-node imports.

Investors and policymakers will watch the listing approval, the size and use of proceeds, and timelines for new fabs. Can more mature-node capacity ease domestic shortages and blunt some effects of Western technology curbs? The answer will shape how China’s wafer ecosystem scales in an era of contested semiconductor supply chains.