China’s No 3 foundry Nexchip files for Hong Kong listing to scale output

China’s third-largest chip foundry, Nexchip Semiconductor, filed for a Hong Kong listing on Tuesday as domestic wafer fabs race to expand production capacity amid surging artificial intelligence demand and Beijing’s push for greater chip self-sufficiency.

Nexchip, a smaller rival to SMIC and Hua Hong Semiconductor, is seeking a dual listing in Shanghai and Hong Kong, signalling the state-backed foundry’s latest effort to strengthen its position in China’s mature-node chipmaking sector.

The move comes as the company looks to tap global capital to fund capacity expansion, joining a growing wave of Chinese tech firms turning to Hong Kong as a fundraising hub.

Nexchip, which was listed on Shanghai’s Nasdaq-style Star Market in 2023, has rapidly ascended the ranks of the global foundry market since it was founded in 2015 as a joint venture between the Hefei government and Taiwanese memory chipmaker Powerchip Semiconductor Manufacturing.

According to Frost & Sullivan, Nexchip ranked as the world’s ninth-largest foundry by revenue and the third-largest in mainland China in 2025, behind only SMIC and Hua Hong. Its production lines in Hefei are operating at near-full capacity, with monthly output reaching 139,000 wafers, driven by sustained domestic demand for legacy chips.

While industry giants such as SMIC and Hua Hong are pushing into advanced nodes including 7nm and 5nm, Nexchip remains focused on mature process nodes, specifically in the 150nm to 40nm range, through its 12-inch wafer foundry services.