GigaDevice Semiconductor's Soaring Debut in Hong Kong: A Chip Powerhouse on the Rise

GigaDevice Semiconductor made a striking debut on the Hong Kong Stock Exchange, with shares rising 40%. The Chinese company, focusing on chip-making, raised significant funds amid U.S.-China tensions. It plans to use proceeds for R&D and strategic investments, capitalizing on AI growth and strong financial performance.

In a remarkable debut on the Hong Kong Stock Exchange, shares of GigaDevice Semiconductor soared by 40% on Tuesday. The surge reflects investors' confidence in the Chinese chip company amidst ongoing U.S.-China tensions over technology.

GigaDevice, known for its specialty in integrated circuit design, managed to raise HK$4.68 billion ($600 million) in its second listing. This move has propelled the company to a new market capitalization of approximately HK$158.4 billion ($20.3 billion).

The company, which ranks second globally in the NOR flash memory market, aims to utilize the proceeds for research and development and strategic acquisitions. Cornerstone investors in this effort included major firms such as Xiaomi and TCL Industries.

(With inputs from agencies.)