Alibaba plans IPO of T-Head unit in Hong Kong — CNBC

Chinese technology company Alibaba has announced its intention to hold an initial public offering of its semiconductor unit T-Head in Hong Kong, China. As CNBC reports, the Hong Kong Stock Exchange will allow the company to spin off this business.

Listing plans

Alibaba plans to offer T-Head shares to public investors in Hong Kong. To carry out the offering, the company must still obtain approval from the Hong Kong Stock Exchange and the China Securities Regulatory Commission.

The filing specifies neither the date of a possible listing nor its planned size. Alibaba also said it confidentially filed an application to list T-Head on the Hong Kong Stock Exchange as early as September 11.

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AI chip development

In late September, Alibaba unveiled the next-generation Zhenwu V900 AI chip. According to the company, its performance is three times higher than that of the previous Zhenwu M890 model, released in May.

Alibaba is among Chinese companies, including Huawei, developing their own semiconductors for artificial intelligence systems amid tightening U.S. restrictions on China's access to chips. At the same time, Chinese financial regulators have in recent months tightened oversight of technology IPOs and capital inflows into the sector.