China AI Chip Firm Targeting Nvidia Seeks Hong Kong IPO in 2023

Chinese chip startup Shanghai Biren Intelligent Technology Co. is considering conducting an initial public offering (IPO) in Hong Kong within this year. The company aims to capitalize on the growing demand from local clients who are turning to its AI chips as an alternative to Nvidia Corp.’s banned silicon.

Biren plans to file for the IPO in the coming weeks while simultaneously engaging in discussions with investors, including state-backed funds in Guangzhou, for a separate funding round. This funding round could potentially raise approximately 2 billion yuan ($279 million).

The size of the IPO has not been finalized yet, and the details of the fundraising, including the size and timeline, are subject to potential changes.

Biren’s fundraising efforts align with the Chinese government’s strategic push to develop its domestic semiconductor industry. This initiative comes in response to a US-led campaign that restricted Chinese companies’ access to advanced chips, including some Nvidia products used for AI development. Founded in 2019, Biren focuses on areas such as graphics processing units and cloud computing and is considered one of the most promising domestic contenders to Nvidia.

The startup has already secured approximately 4.7 billion yuan from investors, including IDG Capital, Ping An Insurance Group Co., and China Merchants Capital. In August 2022, it announced the release of its first general-purpose graphics processing unit, setting a new global computing power record.

Despite its ambitions, Biren faced challenges due to the restrictions imposed by the Biden administration on China’s access to semiconductor technology. Taiwan Semiconductor Manufacturing Co., the world’s leading customized chip manufacturer, suspended the production of advanced silicon for Biren to comply with US regulations.

In the local market, Biren’s products are gaining traction among major Chinese companies as the company prepares for its IPO in Hong Kong. It has secured orders from SenseTime Group Inc., a company that recently introduced a suite of new AI services, including SenseChat.

SenseTime Group Inc. declined to comment on its relationship with Biren, while TSMC also refrained from commenting on customer relationships but emphasized its commitment to complying with all relevant rules and regulations as a law-abiding company.

Overall, Biren’s IPO plans and the increasing demand for its AI chips highlight the growing significance of domestic semiconductor development in China. The progress made by the company positions it as a strong competitor to Nvidia in the AI chip market.