Chinese chip foundry CanSemi’s IPO oversubscribed 2,360 times as investors chase AI boom

Chinese chip foundry CanSemi Technology's Shenzhen initial public offering (IPO) has become one of mainland China's most sought-after tech listings this year, due to investors' belief in its shift towards silicon photonics and its contribution to domestic artificial intelligence infrastructure. The company's retail share sale was more than 2,300 times oversubscribed after accounting for a 20% clawback of offline allotments, resulting in a final multiple of around 2,360 times.

This makes CanSemi the first pure-play wafer fabrication company to list on Shenzhen's ChiNext board, setting a milestone for the exchange. CanSemi, founded in 2017, is recognized as "Guangzhou's top chip company" and manufactures mature-node semiconductors for various applications, including power management, automotive electronics, and industrial sensors.

What sets CanSemi apart is its focus on silicon photonics, a technology that employs light to transmit data, which is becoming crucial for next-generation AI infrastructure. In late 2024, the company introduced a 90-nanometre silicon photonics technology platform and is now transitioning to 65nm process nodes. As of April 2026, CanSemi was the only enterprise in mainland China capable of mass-producing 12-inch silicon photonic wafers on a large scale, according to its prospectus.

The company operates two 12-inch wafer fabrication facilities with a planned capacity of 80,000 wafers per month, and has recently begun construction on a third fab, which is expected to increase monthly capacity by 50%. The IPO attracted 14.4 million online accounts, with 423.4 billion shares in bids, leading to an initial online oversubscription of 3,303 times.

After the clawback, the final multiple was approximately 2,360 times, granting investors a successful allotment rate of just 0.042%. The capital from the IPO will primarily fund the third phase of a 12-inch analog specialty-process production line and advanced technology research and development, including silicon photonics. State-backed investors and industrial funds are among the company's shareholders.

CanSemi's entry into photonics manufacturing through mature-node production demonstrates that domestic foundries can achieve competitive advantages through operational precision, according to ICWise. With the IPO proceeds, CanSemi aims to expand its presence in legacy downstream sectors, such as the Internet of Things, automotive electronics, industrial controls, and 5G communications, driven by the strong demand for chips in these industries.