Chinese chipmaker SigmaStar is mulling an initial public offering in Shanghai that could raise at least CNY least 5 billion (USD 780 million), Bloomberg reported, citing sources familiar with the matter. The startup is working with advisers toward a share sale on the Star board hopefully this year. The plan is not final and could still change, the anonymous sources said, adding that the company is targeting a valuation of CNY 30-50 billion.
The Chinese semiconductor sector is looking to become more self-reliant as global chip supply dwindles and amid US sanctions. Premier Li Keqiang has pledged to boost spending, to help push research into cutting-edge chips that could compete with those of Intel and TSMC.
SigmaStar was founded in 2017. It designs chips for security systems, sports cameras, self-driving vehicles, and smart home devices, among other products. Its backers include China’s Kunqiao Capital and SummitView Capital, according to CB Insights.
