Technology

Next Big Chipmaker IPO

Black Sesame Technologies develop artificial intelligence chips and car systems. According to people acquainted with the situation, it is planning a Hong Kong Initial Public Offering (IPO) that may bring in roughly $200 million.

According to the people, who asked not to be named since the information is confidential, the Xiaomi Corp.-backed business is collaborating with China International Capital Corp. and Huatai International on share sale preparations. They say the IPO could happen as soon as the second half of this year.

The Details of The Deal Are Blurry

According to one of the people, the business may submit a preliminary prospectus in the first quarter. However, certain details might change, such as the fundraising amount and bank lineup.

A spokesperson for Black Sesame didn’t respond to a request for comment immediately. Meanwhile, CICC and Huatai both declined to comment.

Related Post

China is pausing its massive investments to build a chip industry to rival the United States, which may lead to Black Sesame’s listing. Policymakers are looking for additional approaches to assist indigenous chip companies. Following its $9 billion rescue, chip giant Tsinghua Unigroup Co.’s new owners are tapping into various methods to raise money. According to Bloomberg News this week, these include IPOs for three of the firm’s subsidiaries.

According to the company’s website, Black Sesame was founded in Shanghai in 2016 and specializes in AI technologies for image processing, perception algorithms, and system-on-a-chip design. Last year, the firm attracted more than $500 million in C and C+ rounds, putting its value at around $2 billion. Xiaomi was one of the main investors in the most recent financing round.

The News Comes After China Pauses Colossal Chip Spending

China is pausing huge investments in the semiconductor sector to compete with the United States. Meanwhile, a nationwide Covid resurgence endangers the world’s No. 2 economy and Beijing’s finances.

According to people familiar with the situation, senior executives are discussing ways to phase out expensive subsidies that have yielded little results and aided corruption and US sanctions. Some officials have lost their zeal for an investment-led strategy that hasn’t resulted in the desired results, while others are pushing for incentives as high as 1 trillion yuan ($145 billion).

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