Hong Kong's IBS to buy AI chip firm for HK$563 million, gaining indirect stake of about 86% in Shanghai Tianjing Fulian

Hong Kong-listed International Business Settlement (IBS, stock code 0147.HK) said on 30 October it has signed a share purchase agreement with the shareholder of QuantumCompute Solutions to acquire the company's entire equity interests for HK$563 million. Upon completion, QuantumCompute Solutions will become a wholly owned subsidiary of IBS and its results will be consolidated into the group's financial statements.

What is being bought

QuantumCompute Solutions indirectly owns approximately 85.94% of Shanghai Tianjing Fulian, while Foxconn Industrial Internet owns 5.56% of the same company. The announcement says the Shanghai Tianjing Fulian group mainly designs and develops AI system-on-chip (AI SoC) products and integrated solutions, with a focus on low-power, cost-effective AI computing and edge computing applications, and has built a technological base in AI inference and edge-side computing infrastructure. It also says the group is an officially authorised independent chip design house for MediaTek.

Why IBS is doing it

IBS's board said the acquisition expands the group from its existing fintech and computing-power services into AI chip design and edge computing infrastructure, helping to build an ecosystem covering computing infrastructure, AI chips and AI application solutions. The board said buying, rather than building the capability from scratch, should give it faster access to AI chip design expertise, specialist talent and established technology assets. The group also appointed Dr. Tang Tianshen as chief strategic consultant to advise on the strategic development and operations of its fintech-related businesses; the announcement notes his doctorate in electronic engineering from Texas A&M University and senior roles at companies including Intel, Shanghai Hua Hong and SMIC.

The announcement did not disclose completion conditions or an expected completion date, so whether the deal closes as planned and what it ultimately contributes to IBS's results will depend on later announcements.