This article only represents the author's own views.
Tightening U.S. chip export restrictions on China, including new measures in April effectively banning Nvidia's advanced H20 chips from the country, have created a significant opening for domestic Chinese chipmakers eager to fill the void. Cambricon Technologies Corp. Ltd. (688256.SS) stands out among those with its aggressive push to fill that gap, feeding demand for specialized AI chips from companies whose products are increasingly penetrating daily life.
But such complex work requires big R&D spending, even for a company that raised 2.6 billion yuan ($362 million) in its 2020 IPO on Shanghai’s Nasdaq-style STAR Market. That’s leading Cambricon to propose a plan to raise a fresh sum of up to 4.98 billion yuan through a private placement, which the Shanghai Stock Exchange approved last week, providing it with more firepower to advance its expansion strategy.