The move reflects a broader trend across China’s semiconductor sector, where development and scaling are increasingly constrained by geopolitical headwinds. In this environment, public funding has become a critical tool for sustaining R&D and securing expansion.
Despite rising domestic efforts, NVIDIA maintained a dominant position in China’s AI chip market throughout 2024. The company shipped 1.9 million AI chips to China during the year, accounting for approximately 70% of total shipment volumes.
Several of China’s leading AI chip startups have taken concrete steps toward public listing:
These moves signal growing urgency to secure capital, especially as private funding sources dwindle and domestic capacity constraints limit growth.
The rise of models like DeepSeek, which require lower compute resources, has opened up new opportunities for domestic chipmakers. AI inference — once a space dominated by NVIDIA — is becoming more accessible to Chinese startups.
However, this shift has also intensified market competition by lowering technical entry barriers. As a result, startups now face increasing pressure to demonstrate real-world viability and product readiness, all while racing toward a narrowing IPO window.
The future of China’s AI chip sector remains uncertain. While policy support may provide short-term relief, long-term success depends on the ability to break out of cyclical fundraising and deliver viable, scalable products — despite geopolitical and technical obstacles.
For now, capital markets are the key testing ground.
