Chinese chipmaker Enflame wins IPO approval

China’s securities regulator has approved Tencent-backed AI chip startup Shanghai Enflame Technology’s application for an initial public offering on Shanghai’s STAR Market, where the company plans to raise RMB 6 billion ($883 million), reports Caixin.

Tencent Holdings has participated in five funding rounds for Enflame, investing a total of RMB 5.1 billion. Together with its affiliates, Tencent holds a 20.3% stake in the company. It is also Enflame’s largest customer, accounting for 83.8% of the chipmaker’s revenue in 2025. The company said in its prospectus that it expects to turn profitable in 2026 or 2027, despite accumulated losses of RMB 4.4 billion as of the end of 2025.

The listing marks another step in the commercialization of China’s homegrown AI chip sector, as domestic suppliers move to capture demand created by restrictions on advanced foreign processors.