Baidu’s AI chip unit plans dual IPO in Shanghai and Hong Kong

[SHANGHAI] Baidu’s chip unit Kunlunxin is planning an initial public offering (IPO) on Shanghai’s Nasdaq-style bourse in addition to a separate listing plan in Hong Kong, as the Chinese search-engine giant looks to tap investor appetite for semiconductor stocks. 

The chipmaking unit is seeking an IPO on Shanghai’s STAR Board and is working with China International Capital, going by a statement filed by the investment bank to the Chinese Securities Regulatory Commission.

Earlier in 2026, Baidu said Kunlunxin had confidentially filed for an offering in Hong Kong.

On Friday (May 8), Baidu’s stock in Hong Kong jumped as much as 4.1 per cent. 

Investor interest in China’s home-grown chipmakers remains unabated.

The shares of companies including Shanghai Biren Technology, Metax Integrated Circuits Shanghai and Moore Threads Technology have surged since their debuts in 2025.

Kunlunxin, in which Baidu holds a 58 per cent stake, has a market value of at least US$3 billion, Bloomberg reported in December.

Shanghai’s tech-heavy Star 50 Index has surged more than 20 per cent in 2026 and reached an all-time high on Thursday.

In a note on Friday, Jefferies analysts said that pursuing a listing in Shanghai showed progress in Baidu’s plan to carve out Kunlunxin, as the onshore listing makes it easier for Chinese artificial-intelligence model developers and chipmakers to access domestic investors.

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They expected Kunlunxin’s Hong Kong listing to happen in the third quarter. 

Chinese up-and-coming tech companies, including chipmakers and companies in the AI ecosystem, have brought a wave of IPOs to the market – both in Hong Kong and onshore in the past year.

Their fundraising is part of Beijing’s efforts to nurture Chinese semiconductor champions in the face of US restrictions over advanced chips made by the likes of Nvidia.

Baidu’s rival Alibaba is also said to plan a listing of its chipmaking arm.

Baidu started the chipmaking business years ago to provide computing power for its AI ambitions. It said earlier in 2026 that carving out the unit for a separate listing would raise its profile and tap the capital markets for additional funding. 

China’s leading AI developers including DeepSeek and ByteDance have released updated models recently, fuelling demand for domestic chips from suppliers such as Huawei Technologies and Cambricon Technologies for massive inference needs.

Domestic chipmakers disclosed surging revenue earlier in 2026, igniting a fresh rally and boosting investor confidence that the demand for local chips remains robust. BLOOMBERG