Alibaba gets Hong Kong go-ahead to spin off AI chip unit T-Head for separate listing

Alibaba said late on Tuesday (November 10) that the Hong Kong Stock Exchange has approved its plan to spin off its semiconductor subsidiary T-Head, and the company plans a public offering of T-Head shares in Hong Kong. T-Head confidentially filed its listing application on September 11.

Listing still needs exchange committee and regulator approval

Under the regulatory filing, the listing still requires approval from the exchange's Listing Committee and a filing with the China Securities Regulatory Commission. Alibaba disclosed no timetable, offering size or valuation and said there was no assurance the spin-off would be completed. The exchange also waived the usual requirement to give existing Alibaba shareholders an assured entitlement to the spun-off shares. T-Head is wholly owned by Alibaba and is expected to remain a subsidiary after any listing.

Zhenwu V900 due for mass production in early 2027; more than 650 customers

T-Head unveiled its latest chip, the Zhenwu V900, at Alibaba's Apsara Conference in late September, with three times the performance of its predecessor, the Zhenwu M890, and mass production scheduled for the first quarter of 2027. The company says its chips already serve more than 650 customers across automotive, financial services, large language model development, embodied intelligence, energy and manufacturing.

Chinese home-grown chip listings face tighter scrutiny

The move comes as Chinese technology groups race to build domestic AI chip capacity as an alternative to Nvidia products restricted by US export controls. At the same time, regulators are tightening oversight of technology listings: Baidu has delayed the listing of its Kunlunxin AI chip unit, while memory chip maker YMTC has also postponed its offering. Sources: CNBC; The Edge; Seeking Alpha; Investing.com.