Alibaba Group announced late Tuesday that the Hong Kong Stock Exchange has approved plans to spin off its semiconductor subsidiary, T-Head.
The company intends to launch a public share offering for T-Head in Hong Kong, pending final approval from the stock exchange and China’s securities regulator.
No timeline or proposed offering size was disclosed in the filing.
Alibaba said it had already submitted a confidential filing on September 11 to list T-Head on the Hong Kong Stock Exchange.
Alibaba’s Hong Kong-listed shares fell 1% on Wednesday morning, extending the stock’s year-to-date decline to roughly 29%.
In late September, Alibaba unveiled its next-generation AI processor, the Zhenwu V900, which the company claims offers triple the performance of its predecessor, the Zhenwu M890, released in May.
Alibaba joins Huawei and other Chinese firms in developing domestic semiconductors to support artificial intelligence, as tightening U.S. restrictions limit China’s access to foreign chips.
In May, short seller Culper Research alleged that Alibaba acquired restricted Nvidia chips by indirectly financing entities in Southeast Asia. Alibaba did not immediately respond to a request for comment.
Chinese technology stocks have lagged their U.S. counterparts, even as investor enthusiasm surged last year over AI advances from DeepSeek.
Baidu has reportedly postponed the listing of its AI chip unit Kunlunxin, as has Chinese memory chipmaker YMTC, according to this month’s news reports. Neither company responded immediately to requests for comment.
Over the past several months, Chinese financial regulators have intensified oversight of technology IPOs and the surge of capital flowing into the sector.
