Chinese AI chip startup Biren Technology has raised about 1.5 billion yuan ($207 million) in fresh funding, while also preparing for a Hong Kong initial public offering. The 1.5 billion yuan funding round was reportedly led primarily by state-linked investors. Participants included a state-backed fund from Guangdong province and another from the Shanghai government, according to one source.
The funding round and IPO plan come as China seeks to develop domestic alternatives to U.S. semiconductors amid escalating export restrictions by Washington on advanced chips. Beijing has drawn up a plan to build homegrown champions in graphics processing units (GPUs), which are critical for artificial intelligence development.
Biren initially filed documents for a mainland China listing last year but has since shifted focus to Hong Kong, partly due to stricter regulatory requirements on the mainland including less tolerance for loss-making companies, according to information from two sources.
The company is preparing to file for a Hong Kong listing in the third quarter, potentially as early as August, one source said. The company was valued at approximately 14 billion yuan prior to the latest funding round.
It was not immediately clear if Biren had appointed advisers for the IPO, as the information is not public.
Developing domestic GPU capabilities has become critical for China as the U.S. has tightened export restrictions on advanced semiconductors. The latest measures, implemented in April, prompted U.S. chip giant Nvidia of its H20 AI chips to Chinese customers.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
