CanSemi prices a Shenzhen IPO to build more mature-node capacity

CanSemi Technology, formerly Yuexin Semiconductor Technology, priced its Shenzhen listing at 12.01 yuan a share on Wednesday for 512.6 million shares, raising 6.16 billion yuan — about $918.5 million. Full exercise of the overallotment would take it to 589.54 million shares and 7.08 billion yuan. Subscriptions opened Thursday.

The proceeds fund 12-inch wafer production projects and working capital. CanSemi makes 12-inch wafers for chip designers serving consumer electronics, industrial, automotive and AI applications — mature-node work, not leading-edge logic.

The book is the interesting part. Strategic investors took about half the offering, and the names are customers rather than funds: Hangzhou Alibaba Cloud Feitian Information Technology, Shenzhen Goodix Technology and Biwin Storage Technology. A cloud operator and two chip firms buying into the foundry that will make their wafers is vertical integration financed through a public offering.

For anyone modelling semiconductor supply, the signal is that China's mature-node buildout is now being funded by domestic equity markets with downstream customers anchoring the book. That points to sustained supply and continued price pressure in exactly the segment Western analogue and power-chip makers compete in — a slower-burning story than the leading-edge export-control fight, and a more predictable one.

• Confirmed Priced at 12.01 yuan for 512.6m shares, raising 6.16bn yuan (about $918.5m); the overallotment would take it to 589.54m shares and 7.08bn yuan. Reuters, via The Standard
• Confirmed Proceeds fund 12-inch wafer production projects and working capital for chip designers in consumer electronics, industrial, automotive and AI. Reuters, via The Standard
• Reported Strategic investors taking about half the offering include Hangzhou Alibaba Cloud Feitian Information Technology, Shenzhen Goodix Technology and Biwin Storage Technology; subscriptions opened 24 September. Reuters / Dealroom