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Baidu applies to list semiconductor business on Hong Kong Stock Exchange
Monday, January 5, 2026 at 09:34 AM
Baidu has applied to the Hong Kong Stock Exchange to spin off its semiconductor business for a separate listing. The move aims to secure independent funding for its chip design and development efforts amidst growing demand for AI infrastructure in China.
Context
Baidu has filed a confidential application to spin off its AI semiconductor arm, Kunlunxin, through an initial public offering on the Hong Kong Stock Exchange. Submitted on January 1, 2026, the move aims to unlock the unit's standalone value while maintaining Baidu’s controlling stake of 59.45%. This strategic pivot allows the group to capitalize on China’s push for semiconductor self-sufficiency and secure dedicated financing amid ongoing U.S. export restrictions on advanced computing hardware.
Valued at 21 billion yuan (approximately $3 billion) in its latest funding round, Kunlunxin has emerged as a leading domestic competitor, shipping 69,000 units in 2024. The unit recently secured major contracts with China Mobile and projects annual revenue to reach 8 billion yuan by 2026. If approved, the listing is expected by mid-2026, providing the capital necessary to scale its next-generation M100 and M300 chips for large-scale multimodal AI training and inference.
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