Unisoc, having achieved annual revenues above CNY10 billion (approx. US$1.38 billion) for two successive years from 2022 to 2023, is preparing to expedite its initial public offering (IPO), according to Chinese media reports. In September 2024, the fabless chipmakers completed its most recent equity financing round, which secured a funding of CNY4 billion.
Unisoc has recently implemented business registration modifications that include state-owned enterprises and institutions from Beijing and Shanghai, such as banks, insurance companies, and brokerages, according to the reports. When combined with previous investors such as China's National Integrated Circuit Industry Investment Fund (also known as the Big Fund), Zhongguancun Development Group, and Intel (China), Unisoc's shareholder roster is truly remarkable.
In March 2024, Unisoc received a total of CNY3.2 billion in credit from a syndicate of five large banks, which included the Industrial and Commercial Bank of China and China Construction Bank. Unisoc executives have previously stated that this successful financing would facilitate the company's upcoming initial public offering.
Unisoc had already initiated the process of preparing for an IPO following the completion of its integration in 2018, according to industry sources. However, these plans were suspended as a consequence of Tsinghua Unigroup's bankruptcy restructuring. In the wake of the parent company's restructuring, Unisoc is presently making progress in its listing endeavors.
Unisoc chairman Daojie Ma recently revealed in an interview that the company's year-long equity financing endeavor has been successfully completed, with all funds from the CNY4 billion equity financing now fully deployed.
Ma stated that this round of funding will be used mostly for core research and development. The goals include iterative computations on existing products, extensive R&D on new technologies, and improving talent strategies, with a special emphasis on attracting core technical professionals.
Focus shifted to non-handset applications
The variations in the mobile phone industry are closely related to Unisoc's performance. According to the company's official website, it presently works with more than 500 companies, including Honor, Xiaomi, Vivo, Samsung, Motorola, Hisense, and ZTE.
According to Counterpoint Research, Unisoc ranked third in the global smartphone application processor/system-on-chip market with a 13% market share in the second quarter of 2024. This exceptional performance is primarily due to the strategic targeting of emerging markets overseas and the establishment of partnerships with prominent brands such as Xiaomi and Vivo.
However, the smartphone industry has entered a period of lethargic development, which is undeniable. As a result, industry observers believe that the consumer electronics market conditions are essential to Unisoc's performance.
Furthermore, according to observers, Unisoc is expanding its target applications to include electric vehicles (EV) and artificial intelligence (AI). The company is now building a comprehensive AI computation system in the AI domain, whereas mature products in the automotive electronics sector have already entered mass production. In the midst of worldwide competition for AI developments, Unisoc is actively getting ready for its IPO by focusing more on AI efforts.
Article translated by Jessie Shen
