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Xi Jinping’s China To Overcome US Curbs With Chinese Chipmakers Heading For $8B IPO: Nikkei Asia

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Chinese semiconductor manufacturers, aiming to rebound from a market slump and U.S. export restrictions, anticipate raising over $8 billion from stock market listings this year, Nikkei Asia reports.

Expansion Amid Challenges

The Hong Kong-listed Hua Hong Semiconductor received approval in early June for a dual listing on Shanghai’s tech-oriented STAR market, where it aims to raise 18 billion yuan ($2.5 billion). The company plans to build a $6.7 billion factory in Wuxi, with the state-owned China Integrated Circuit Industry Investment Fund investing in the project, according to Nikkei Asia.

See Also: US Aims To Thwart Xi Jinping’s AI Ambitions As China Lures Billionaires Into Race

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U.S. Restrictions and China’s Response

As the U.S. considers expanding restrictions on advanced semiconductors for artificial intelligence applications, Chinese chipmakers are accelerating efforts to build their own supply chain. Even if more Nvidia chips are added to the ban, it could spur further growth in China’s semiconductor industry, says Wei Shaojun, a professor at Tsinghua University.

Growth Despite Sanctions

Despite a 5% shrink in China’s semiconductor market last year, sales of domestically made chips grew 14%. As of mid-June, 13 semiconductor companies have listed on yuan-denominated exchanges this year, raising 42.2 billion yuan. The biggest float so far this year was by Semiconductor Manufacturing Electronics (ShaoXing) Corp. (SMEC), which raised nearly 10 billion yuan on the STAR market.

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Global Investment in China

Despite U.S.-led pressure, global chip companies plan to continue investing in China, the world’s largest market with a roughly 30% share. Executives from Qualcomm, Intel, and ASML have visited China this year, signaling their commitment to the market, Nikkei Asia noted.

Read Also: Nvidia Says Prohibiting It From Selling AI Chips To China Will Lead To ‘Loss Of Opportunities’ In US: WSJ

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