Shares of Chinese interconnect chip designer Montage Technology surged more than 60% in their Hong Kong trading debut on Monday (08/02).

The stock closed at 175 Hong Kong dollars ($22.39), after pricing its initial offering at HK$106.89, the upper end of the range.

The IPO raised $902 million. The Hong Kong tranche was subscribed over 700 times, while the international offering was nearly 38 times covered, showing strong investor demand for Chinese AI and semiconductor firms despite global export controls.

Company Profile and Market Focus

Founded in 2004 and based in Shanghai, Montage Technology specializes in infrastructure chips that support high-performance computing, data centers, and artificial intelligence applications.

Montage Technology is also listed on the mainland stock market, with a market capitalization of about $27 billion, according to LSEG data.

Recent Surge in Chinese Semiconductor IPOs

The Hong Kong listing is part of a recent wave of Chinese semiconductor IPOs. January saw debuts from GigaDevice Semiconductor and OmniVision Integrated Circuits.

Other chip companies, including Biren Technology, MetaX, Moore Threads, and Shanghai Iluvatar CoreX Semiconductor, have also recently gone public.

China’s Push for Chip Self-Sufficiency

These IPOs come as Beijing increases efforts to boost self-sufficiency in advanced chips and reduce reliance on U.S. designers like Nvidia, which cannot sell its most advanced chips to China.

Market Competition and Nvidia’s H200 Chip

Competition in China’s AI chip market remains strong, with Huawei and its chip unit HiSilicon holding a leading domestic share.

Nvidia may see a market rebound after the Trump administration cleared the H200 chip for sale to China. While the H200 is not Nvidia’s most advanced technology, it is more powerful than any AI chip previously sold in China.

China approved the first batch of H200 imports for domestic tech companies, including ByteDance, Alibaba, Tencent, and DeepSeek. Final rules and conditions are still being finalized, according to anonymous sources cited by Reuters.

PHOTO: SHUTTERSTOCK

This article was created with AI assistance.

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