Nexchip Semiconductor Corporation (HKEX: 02249) has announced its initial public offering for H-shares, with the subscription period running from June 30 to July 7, 2026.

The company plans a global offering of 216 million H-shares, with approximately 10% allocated for the Hong Kong public offering and around 90% for the international offering. An over-allotment option of up to 15% of the total offering is also in place. The indicative price range is set between HK$30.00 and HK$32.30 per share, with each board lot comprising 100 H-shares.

Trading of the H-shares on the Stock Exchange of Hong Kong is expected to commence at 9:00 a.m. on Friday, July 10, 2026.

Company Profile and Market Position

The group is a leading 12-inch pure-play semiconductor foundry, occupying a critical position in the global semiconductor value chain. It provides foundry services, transforming the integrated circuit design blueprints of fabless, fab-lite, and IDM companies into high-quality processed wafers at scale.

Since its establishment, the company has been committed to advancing its process technology. Its foundry services cover technology nodes from 150nm to 40nm, and it has successfully developed a 28nm logic chip platform, enabling it to meet the evolving demand for higher-performance and higher-efficiency semiconductor solutions.

Its process capabilities are centered around key application-specific integrated circuit categories, including display driver ICs (DDIC) for display control, CMOS image sensors (CIS) for image sensing, and power management ICs (PMIC) for regulating and optimizing power usage. Logic ICs for data processing and micro-control units (MCU) for embedded control have also seen rapid growth.

This product portfolio allows the company to support a wide range of applications in consumer electronics, automotive electronics, industrial control, artificial intelligence (AI), the Internet of Things (IoT), and memory.

By combining differentiated process technology with stable manufacturing scale, the group has solidified its position in the global foundry market. According to Frost & Sullivan, from 2020 to 2025, the company achieved the world's fastest growth in both capacity and revenue among the top ten global foundries. Based on the same source, in 2025, the company ranked as the world's ninth-largest and China's third-largest foundry by revenue.

Cornerstone Investors and Use of Proceeds

The company has entered into cornerstone investment agreements with a group of investors, including ChipOne, Puxin Technology, SenseTime Microelectronics (Hong Kong), Chery Automobile (Hong Kong), Hong Kong Goertek, Taikang Life Insurance, GF Fund Management, Shanghai Gaoyi, CICC Financial Trading Limited (in relation to Gaoyi's OTC swap), Perseverance Asset Management, China Universal Asset Management (Hong Kong), NGS Super, HHLR Advisors, Ltd., WT Asset Management, Ivy Capital, Verition, PinPoint, Dacheng International, ICBC Wealth Management, China Post & Capital Wealth Management, and Harvest Global Investments. These cornerstone investors have agreed, subject to certain conditions, to subscribe for, or procure their designated entities to subscribe for, a total of approximately US$430 million worth of offer shares (rounded down to the nearest whole board lot of 100 shares).

Assuming an offer price of HK$31.15 per share (the midpoint of the price range), the cornerstone investors will subscribe for a total of 108 million offer shares.

Assuming the same midpoint offer price of HK$31.15 and that the over-allotment option is not exercised, the company estimates net proceeds from the global offering to be approximately HK$6.536 billion after deducting underwriting fees, commissions, and estimated expenses.

The company intends to use the net proceeds as follows: approximately 53.6% for the research, development, and optimization of a new-generation 22nm technology platform; about 23.1% for establishing an AI-powered intelligent R&D and production system; roughly 13.3% for setting up an R&D and sales center in Hong Kong to better serve the Asia-Pacific market; and the remaining 10.0% for working capital and general corporate purposes.

Financial Performance

The company has demonstrated stable growth throughout the industry cycle. For the years 2023, 2024, and 2025, its total revenue was RMB 7.183 billion, RMB 9.12 billion, and RMB 10.388 billion, respectively. The corresponding gross profit margins for those years were 20.3%, 25.2%, and 22.7%.

Net profit for 2023, 2024, and 2025 was RMB 119 million, RMB 482 million, and RMB 467 million, respectively, with net profit margins of 1.7%, 5.3%, and 4.5% for the same periods.