Tencent-backed Enflame sets $908M Shanghai IPO at 142.18 yuan per share
Two moves in China's semiconductor ecosystem landed on the same day: a Tencent-backed AI chipmaker priced a near-billion-dollar IPO, and a Chinese court froze $300 million in assets belonging to a Dutch chipmaker its parent company wants back.
Enflame Technology set its Shanghai IPO price at 142.18 yuan per share, aiming to raise 6.1 billion yuan ($908 million) on the STAR Market. The eight-year-old startup, backed by Tencent as both a major shareholder and its single largest customer, plans to sell 43 million shares when subscriptions open Wednesday. At that price, Enflame is valued at 61.8 times its 2025 revenue — steep by global standards, but a bargain compared to domestic rivals Moore Threads and MetaX, which trade above 160 times sales. Nvidia, by contrast, sits at roughly 25 times. Enflame has not yet turned a profit, but the company says proceeds will fund its fifth- and sixth-generation AI chips and advanced hardware-software co-design projects. The listing is the latest in a string of Chinese AI chip IPOs — Moore Threads, MetaX, and Biren Technology have all gone public in the past year — as Beijing pours capital into domestic alternatives to Nvidia's hardware while U.S. export controls keep the most advanced Western chips out of reach.
A Chinese court froze up to $300 million in assets held by Dutch chipmaker Nexperia, handing its Chinese parent Wingtech a powerful bargaining chip. The freeze targets Nexperia's stakes in four China-based subsidiaries, according to Reuters and Nikkei. Wingtech acquired Nexperia in 2018 but has since lost operational control amid Dutch government scrutiny of Chinese ownership in the semiconductor supply chain. The court order gives Wingtech leverage as it pushes to regain authority over a company that makes chips for automotive, industrial, and consumer applications worldwide. The case is the latest flashpoint in the escalating tug-of-war between Beijing and Western capitals over who controls the hardware that powers everything from electric vehicles to AI data centers.
What to watch: Whether Enflame's subscription on Wednesday draws the same retail frenzy that greeted Moore Threads and MetaX — and whether the Nexperia freeze triggers a formal Dutch government response.
Do you think China's domestic AI chip IPOs are building real competitive moats, or just riding a policy-driven capital wave? Tell us in the comments.
Sources: Reuters · Bloomberg · Reuters (Nexperia) · Nikkei Asia
