Chinese AI Chipmaker Axera Semiconductor Targets $379M in Hong Kong IPO

The pursuit of money to power AI ambitions continues at its usual, relentless pace.

Chinese AI chipmaker Axera Semiconductor is seeking to raise HK$2.96 billion ($379.2 million) through an initial public offering in Hong Kong, according to a regulatory filing. The plan is to scale up technology development and expand sales in a capital-intensive and highly competitive sector.

If completed, the listing would add to a growing pipeline of Chinese semiconductor and AI companies turning to Hong Kong’s equity markets for funding, amid tightening geopolitical constraints and rising demand for chips that can run AI applications closer to where data is generated. Other recent IPO examples include MiniMax, Z.ai (formerly Zhipu), and Biren.

IPO structure and use of proceeds

The proceeds are earmarked for upgrading its technology platform and developing new products, as well as sales expansion, potential equity investments or acquisitions, working capital, and general corporate purposes.

The company said it intends to invest heavily in research and development to strengthen its core chip architecture and improve performance and efficiency for next-generation AI workloads. Funds will also be used to broaden its commercial footprint, particularly in applications such as smart cameras, industrial equipment, and vehicles, where on-device processing is increasingly preferred over cloud-based computing.

Cornerstone investors for the offering include OmniVision Integrated Circuits’ WILL Semiconductor unit and JSC International Investment Fund SPC, providing early validation for the deal. Axera is backed by investors including Qiming Venture Partners and Tencent, which have supported the company through multiple funding rounds.

Rising demand for on-device AI inference

Axera’s listing comes as demand grows for AI inference. This refers to the running of models trained to recognise patterns and make decisions, thus shifting from cloud servers onto devices such as cameras, industrial equipment, and cars. This shift is being driven by the need for lower latency, improved data privacy, and reduced bandwidth costs, especially in real-time visual processing.

In China, this trend has created opportunities for domestic chip designers focused on edge computing and on-device AI, areas less dominated by U.S. technology giants than data-center GPUs. However, it has also intensified competition among local players racing to deliver higher performance at lower power consumption.

Axera, founded in 2019 and formerly known as Shanghai Zhiaixin Semiconductor Technology, is a fabless chip designer. Its processors are designed to help cameras and vehicles process visual data in real time, enabling functions such as object recognition, monitoring, and driver assistance without relying on constant cloud connectivity.

The company said it was the largest provider of mid-to-high-end visual on-device AI inference chips globally by shipments in 2024, citing research firm China Insights Industry Consultancy in the filing.

Financial performance and losses

Despite its market position, Axera remains loss-making, underscoring the heavy investment required to develop advanced semiconductors. For the first nine months of 2025, its revenue rose 5.8% to 269.0 million yuan ($38.7 million) from 254.2 million yuan a year earlier, according to the filing.

Over the same period, net loss widened to 855.7 million yuan from 691.0 million yuan a year earlier. The company attributed the losses primarily to high research and development expenses, as well as costs associated with expanding sales channels and supporting customers during product adoption.

Investors are likely to scrutinise Axera’s path to profitability, particularly as pricing pressure increases and customers demand higher performance at lower cost. Still, many semiconductor IPO investors have shown a willingness to tolerate near-term losses in exchange for exposure to long-term growth in AI and intelligent devices.

Hong Kong’s role in China’s chip funding push

Axera’s planned IPO highlights Hong Kong’s growing role as a fundraising hub for Chinese technology firms, particularly in sensitive sectors such as semiconductors.

With mainland A-share listings often subject to long approval timelines and U.S. capital markets less accessible, Hong Kong has emerged as a preferred venue for companies seeking international investors and sizable capital raises.

China’s AI race is picking up speed again.

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