Alibaba Group Holding Ltd. is reportedly planning an initial public offering for its semiconductor design subsidiary, T-Head.
This initiative supports China's broader effort to bolster the domestic chip industry. The move aims to achieve greater self-sufficiency against global supply chain challenges. Listing the AI chip unit mirrors a similar strategy used by Chinese tech giant Baidu.
Spinning off the division aims to unlock the value of the high-growth business. The move provides T-Head greater autonomy to expand its client base and product development.
T-Head designs chips for cloud computing, artificial intelligence, and the Internet of Things. These products remain crucial to Alibaba's core businesses and future expansion.