Shares of Shanghai-based interconnect chip designer Montage Technology Co. Ltd. surged more than 64% in their Hong Kong trading debut on Monday, February 9, 2026, closing at HK$175 ($22.39) after pricing at the top of the range at HK$106.89.

The IPO raised HK$7.02 billion ($902 million), marking one of the strongest listings in the Chinese semiconductor sector in recent years and underscoring robust investor appetite for domestic AI and high-performance computing chipmakers.

The Hong Kong public tranche was oversubscribed more than 700 times, while the international offering attracted nearly 38 times coverage, reflecting strong institutional and retail demand. Montage, which specializes in high-speed interconnect solutions for data centers, AI accelerators, and high-performance computing, joins a growing list of Chinese semiconductor firms tapping capital markets to fund expansion amid Beijing’s drive for technological self-sufficiency.

Founded in 2004, Montage has established itself as a key player in memory interface chips, PCIe retimers, and CXL (Compute Express Link) solutions critical for next-generation AI servers and data centers. Its mainland listing already commands a market capitalization of approximately $27 billion, per LSEG data, and the Hong Kong offering provides additional capital to accelerate R&D and global outreach.

The debut follows a flurry of recent Chinese chip IPOs:GigaDevice Semiconductor and OmniVision Integrated Circuits both listed in January 2026. Biren Technology, MetaX, Moore Threads, and Shanghai Iluvatar CoreX Semiconductor have also gone public in recent months.

This wave of listings coincides with China’s intensified push to develop indigenous advanced semiconductor capabilities, spurred by U.S. export restrictions that have blocked sales of Nvidia’s most cutting-edge GPUs to Chinese customers. Beijing has poured billions into domestic alternatives, with state-backed funds and policies supporting firms designing AI accelerators, GPUs, and interconnect technologies.

Competition remains fierce domestically. Huawei’s HiSilicon unit holds a commanding share of China’s AI chip market, leveraging its Ascend series processors and integration with Huawei’s cloud and enterprise ecosystem. Other players like Biren, Moore Threads, and Iluvatar are vying for share in data center and edge AI applications, creating a crowded field where scale, ecosystem integration, and government support are decisive factors.

The Montage listing also occurs against a shifting external landscape. Nvidia, long dominant in China’s AI market, could regain ground following recent regulatory developments. In late January 2026, China granted conditional approvals for ByteDance, Alibaba, Tencent, and DeepSeek to import Nvidia’s H200 chips—the most powerful AI processor yet cleared for the Chinese market.

While the H200 lags Nvidia’s latest Blackwell and Rubin architectures, it significantly outperforms earlier restricted models like the H800 and A100. Approvals came with conditions still being finalized by China’s National Development and Reform Commission (NDRC), reflecting Beijing’s cautious approach to balancing AI advancement with domestic chip development.

The H200 clearance has raised hopes among some investors that Nvidia could recapture market share, though U.S. lawmakers and regulators continue to scrutinize any potential military end-use. A January 28 letter from House Select Committee on China Chairman John Moolenaar to Commerce Secretary Howard Lutnick alleged Nvidia provided technical assistance to DeepSeek that may have aided Chinese military applications, adding political risk to future shipments.

Despite these headwinds, the Montage debut reflects optimism about China’s long-term prospects in AI infrastructure. Domestic firms are increasingly filling gaps left by restricted U.S. chips, particularly in interconnects, memory interfaces, and custom accelerators. Montage’s strong debut—coupled with high subscription rates—suggests investors are betting on continued government support, growing domestic AI demand, and potential export opportunities as Chinese firms expand globally.

The listing also highlights Hong Kong’s role as a fundraising hub for mainland tech companies seeking international capital and visibility, even as geopolitical tensions complicate cross-border technology flows. With China’s AI ambitions undiminished and U.S. export controls evolving, Montage’s successful IPO may encourage further listings and investment in the sector, reinforcing the view that domestic players are poised to capture a larger share of the world’s fastest-growing technology market.