CanSemi Technology Seeks $919 Million in Shenzhen IPO

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CanSemi Technology Seeks $919 Million in Shenzhen IPO

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CanSemi Technology Inc., a Chinese chip foundry, is moving forward with its initial public offering on the Shenzhen stock exchange’s ChiNext board, seeking to raise around 6.16 billion yuan ($919 million). The company, based in Guangzhou, is offering approximately 512 million shares at 12.01 yuan each, with subscriptions opening on September 24, 2026.

This IPO is part of a broader trend of Chinese semiconductor companies going public, driven by Beijing’s strategic push for technological self-reliance. CanSemi Technology received approval for its IPO from the Shenzhen Stock Exchange’s ChiNext Board on June 15, 2026. Notably, it is the first wafer fabrication company and the first unprofitable company to pass a review on this board since its reforms.

The company plans to allocate the majority of the IPO proceeds, approximately 6 billion yuan ($888 million), to core business investments. This includes 3.5 billion yuan ($518 million) for a 12-inch integrated circuit analog specialty process production line project (Phase III) and 2.5 billion yuan ($370 million) for a specialty process technology platform R&D project. An additional 1.5 billion yuan ($222 million) is earmarked for supplementing working capital.

Despite rapid revenue growth, reaching 2.582 billion yuan ($382.2 million) in 2025, CanSemi Technology has reported cumulative losses exceeding 6.5 billion yuan ($962 million) over three years, with negative gross margins. The company does not anticipate becoming profitable until 2029 at the earliest. This listing reflects China’s adjusted IPO regulations on the ChiNext board, which now permit pre-profit technology companies to list, aiming to attract high-quality companies and long-term capital to bolster the country’s technological innovation.

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