China's Nexchip to raise $890 million in Hong Kong share sale

Rajasik Mukherjee

Wed, July 8, 2026 at 5:33 AM PDT 1 min read

By Rajasik Mukherjee

July 8 (Reuters) - China's Nexchip Semiconductor said on Wednesday it aims to raise around HK$6.98 billion ($890.37 million) ‌in its Hong Kong share sale by pricing the ‌offering at the top end of its range to benefit from the city's revitalised ​capital market.

The chipmaker is offering 216.2 million shares at HK$32.30 apiece, according to its prospectus.

Nexchip plans to spend more than HK$3.5 billion from the proceeds on research and development and another HK$1.5 billion on ‌AI-powered systems to integrate ⁠research, development and production processes.

Chinese chipmakers are stepping up investment in manufacturing technology and artificial intelligence as ⁠Beijing pushes for greater semiconductor self-sufficiency.

New listings in Hong Kong have soared nearly 57% in the first half of 2026 from a year ​earlier ​to about $22.45 billion, marking the busiest ​start to a year ‌for the city in five years, according to LSEG data.

"I think Nexchip's Hong Kong listing reflects China's broader strategy of using domestic capital markets to accelerate semiconductor self-sufficiency," said Glenn Yin, research director at brokerage ACCM.

"The fresh funding should support capacity expansion and technological ‌upgrades, but recent weakness in major ​chipmakers such as Samsung also shows that ​investors are becoming increasingly ​selective toward semiconductor stocks."

Apple supplier Luxshare Precision Industry also ‌priced a $3 billion Hong Kong ​share sale on ​Tuesday.

Nexchip, a partially state-owned firm, said it expects to announce the level of investor demand for its international offering on ​Thursday, with trading of ‌its shares set to begin the following day.

($1 = 7.8394 ​Hong Kong dollars)

(Reporting by Rajasik Mukherjee; additional reporting by ​Nichiket Sunil; Editing by Leroy Leo)