Chinese technology giant Alibaba Group is preparing to list its artificial intelligence (AI) chip subsidiary, T-Head Semiconductor, on the Hong Kong Stock Exchange, marking a significant step in its efforts to unlock the value of its semiconductor business and strengthen its AI and cloud-computing operations.
Alibaba confirmed the development on November 10, 2026, stating that T-Head had confidentially submitted a Form A1 listing application on September 11, 2026. The filing followed approval from the Hong Kong Stock Exchange for Alibaba's proposed spin-off of the chipmaking business.
The proposed initial public offering (IPO) is expected to include a public share sale in Hong Kong and an institutional placement. However, Alibaba has not disclosed the anticipated offering size, valuation, share structure, or the stake it intends to retain following the listing.
According to Alibaba, the proposed separation will allow investors to assess T-Head's business and financial prospects independently of the group's other operations. It will also provide the semiconductor subsidiary with direct access to capital markets, enabling it to raise funds for research, product development and business expansion.
Alibaba believes the move could help T-Head strengthen relationships with its customers, suppliers and strategic partners while improving its visibility in the competitive AI semiconductor market. T-Head is expected to remain a subsidiary of Alibaba after the proposed listing, allowing the parent company to retain an interest in its growth.
Founded in 2018, T-Head develops semiconductor products and computing solutions for artificial intelligence, data centres, cloud computing and Internet of Things (IoT) applications. The business plays an important role in Alibaba's strategy to develop in-house computing infrastructure and reduce its dependence on overseas chip suppliers.
The proposed IPO comes amid increasing demand for AI computing infrastructure and China's efforts to strengthen its domestic semiconductor industry. US export restrictions on advanced processors have encouraged Chinese technology companies to accelerate investments in locally developed alternatives and reduce their reliance on foreign suppliers, including Nvidia.
In September 2026, T-Head unveiled its flagship Zhenwu V900 AI processor, which Alibaba said delivers three times the performance of its previous-generation chip. Designed to support the training and inference of next-generation AI models, the processor highlights the company's efforts to expand its domestic AI hardware capabilities.
The development also follows a similar move by Baidu's AI chip subsidiary, Kunlunxin, which confidentially filed for a Hong Kong listing in January 2026. The growing number of proposed semiconductor listings reflects increasing investor interest in China's AI hardware sector.
However, T-Head's proposed IPO remains subject to further regulatory clearances, including approval from Hong Kong's Listing Committee and relevant Chinese authorities. Alibaba has stated that there is no guarantee the listing will proceed. Meanwhile, Alibaba's Hong Kong-listed shares closed 2.9% lower on November 10, having declined nearly 30% since the beginning of 2026.