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Moore Threads Seeks IPO Amid China's Drive For Chip Independence

The GPU maker hopes to benefit from China's drive to develop its domestic chip industry, as it navigates growing obstacles from U.S. sanctions

Key Takeaways:

Moore Threads has filed for an A-share IPO, reporting combined losses of 5 billion yuan over the last three years on modest but fast-growing revenue

The company hopes to become a leader in China's GPU market, which is expected to grow tenfold by 2029 as domestic chips increasingly replace foreign imports

It may be just five years old, but Moore Threads Technology is already looking to Beijing for more than $1 billion in assistance as tries to become an key Chinese supplier of the graphics processing units (GPU) that are central to powering AI applications. The high-tech chipmaker filed for an IPO on China's A-share market last week, where it's almost certain to attract interest from the country's vast field of state-run investors eager to assist Beijing in the country's quest for self-sufficiency in key technologies.

Moore Threads is, in many ways, a product of the billions of dollars that China is pumping into such key tech sectors. It was founded at the height of U.S. sanctions against China, the same year that Washington imposed sweeping bans on leading tech firm Huawei. Its founders believe the company could benefit from new opportunities for Chinese companies to sell products like GPUs, which now mostly come from foreign suppliers and are key for development of AI and other sophisticated computing applications.

Such ambitions come with their own risks, as Moore Threads found out in 2023 when it was subject to U.S. restrictions similar to those placed on Huawei. That action bars the company from manufacturing its products in partnership with companies like TSMC, a contract chip maker used by most of the world's most cutting-edge chip designers to make their products.

In China's policy-driven climate, companies like Moore Threads are receiving preferential treatment that allows them to list ahead of other firms that have often waited longer, reflecting Beijing's desire to channel limited IPO funds to candidates in high-priority areas.

The company's