Nexchip has submitted a listing application to the Hong Kong Stock Exchange, intending to leverage the international capital market to support a large-scale expansion plan with a total investment of 35.5 billion yuan and achieve a crucial leap to 28nm process technology.
Nexchip officially submitted its Hong Kong listing application this Tuesday, with China International Capital Corporation (CICC) as the sole sponsor. The company aims for a dual listing in both A-shares and H-shares. Headquartered in Hefei, Nexchip is the third-largest wafer foundry in China, following SMIC and Hua Hong Semiconductor.
The timing of the submission comes just weeks after Nexchip completed the full process development of its 28nm logic platform. This marks the company's advancement from its previously dominant 55nm to 150nm process nodes to higher-value nodes, opening doors to emerging application markets such as AI, mobile phones, smart vehicles, and OLED display panels.
This move to Hong Kong is the latest in a recent wave of Chinese semiconductor companies listing on the Hong Kong Stock Exchange, reflecting the overall trend of accelerated expansion and consolidation in China's wafer foundry industry within the mature process segment.
<h2>35.5 Billion Yuan Expansion Fuels Financing Needs</h2>
In January of this year, Nexchip officially launched its fourth-phase project in the Hefei National High-tech Industrial Development Zone, with a total investment of 35.5 billion yuan.
This includes the construction of a new 12-inch wafer fab with a designed monthly capacity of 55,000 wafers, covering 40nm and 28nm process nodes. The facility is planned to begin equipment installation in the fourth quarter of this year, followed by phased mass production, aiming for full production by the second quarter of 2028.
Nexchip's prospectus indicates the company's plan for a &#34;dual listing (A+H shares),&#34; with the raised capital explicitly designated for equipment procurement and R&amp;D investment for the fourth-phase project.
The core value of a Hong Kong listing lies in opening up international capital channels—not to find US dollars, but to attract institutional investors willing to hold Chinese semiconductor assets long-term.
<h2>Continued Hotness in Hong Kong Semiconductor Financing</h2>
Nexchip's move to Hong Kong is part of a recent surge in Chinese chip companies seeking financing in Hong Kong.
Since the second half of 2024, the Hong Kong Stock Exchange has seen a wave of domestic chip listings: SMIC's transfer from the STAR Market to Hong Kong, Hua Hong Semiconductor's additional issuance, and Horizon Robotics' IPO.
For Nexchip, a dual listing will help broaden financing channels, increase coverage of international institutional investors, and provide more sustained funding support for large-scale capacity construction.
<h2>28nm Breakthrough Unlocks High-Value Markets</h2>
Nexchip has long focused on mature process technologies, with its core capacity concentrated in the 55nm to 150nm range, primarily serving applications such as display driver ICs, power management chips, and image sensors.
According to The Next Web, the completion of the full process development for its 28nm logic platform allows the company to penetrate high-value sub-markets with continuously expanding demand, including artificial intelligence, mobile phones, smart connected vehicles, and OLED display panels.
Within mature process technologies, 28nm represents a node with relatively high technical content and product premiums. This breakthrough, combined with the planned 40nm and 28nm capacity in the fourth-phase project, creates synergy, laying the foundation for the company to improve its product mix and enhance the added value of its foundry services.
<h2>China's Mature Process Capacity Accelerates Expansion</h2>
Mature process technologies, where Nexchip operates, are one of the most clearly defined directions in China's semiconductor strategy. According to the latest research from TrendForce, China's share of global mature process capacity is projected to rise from 22% in 2021 to 53% by 2030.
In addition to continuous capital investment, leading domestic foundries are also accelerating expansion through mergers and acquisitions.
According to The Next Web, SMIC completed the acquisition of the remaining 49% stake in its mature process subsidiary, SMIC Northern, for $5.7 billion. Hua Hong Semiconductor acquired Shanghai Huali Microelectronics for $1.2 billion, adding a monthly capacity of 38,000 12-inch wafers, covering process nodes from 65nm to 40nm.
Nexchip's IPO in Hong Kong coincides with this wave of industry consolidation, collectively outlining the pattern of accelerated scaling in China's mature process industry driven by capital.
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Nexchip has submitted its listing application to the Hong Kong Stock Exchange, planning to invest 35.5 billion yuan in capacity expansion and advance to 28nm process technology. As China's third-largest wafer foundry, Nexchip's listing will support its development in emerging markets such as AI, mobile phones, and smart cars. This listing is the latest trend in Chinese semiconductor companies seeking financing in Hong Kong, aiming to broaden financing channels and attract long-term investors

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China's Third-Largest Wafer Foundry, Nexchip, Plans Hong Kong Listing, Betting 35.5 Billion Yuan on 28nm!