Yuanjie Semiconductor Technology is moving ahead with a Hong Kong IPO (Initial Public Offering) after submitting an Application Proof to the Hong Kong Stock Exchange (HKEX), following a 2024 regulatory action by the Shaanxi Bureau of the China Securities Regulatory Commission (CSRC) involving Chairman Zhang Xingang and CFO Chen Zhenhua.
The move comes amid strong and rising demand for AI-driven optical and photonic chips used in data centers and AI infrastructure, driving investor interest and a surge in its shares.
The company submitted an Application Proof dated March 25, 2026 to the Hong Kong Stock Exchange. The filing states that the company received “a decision on administrative regulatory measures” in July 2024 from the Shaanxi Bureau of the China Securities Regulatory Commission, under which authorities “ordered the Company to take rectification measures and conducted regulatory interviews with Dr. ZHANG XINGANG and Mr. CHEN Zhenhua.”
The regulatory action related to two issues: early recognition of revenue in the company’s 2022 annual report and use of IPO proceeds – originally allocated for optical chip production projects – for the payment of personnel expenses
The company states that these issues arose from technical judgment and a misunderstanding of fund usage rules. It also states that “the 2024 Regulatory Decision itself did not contain any finding of fraud, dishonesty or intentional misconduct,” and describes the action as supervisory and corrective rather than a penalty.
According to the filing, the company has rectified the issues, their impact was immaterial, and no further regulatory action has been taken.
Founded in 2013 and listed on the Shanghai Stock Exchange STAR Market on December 21, 2022, Yuanjie Semiconductor Technology produces laser chips, including CW, EML and DFB products, used in optical communication systems. According to China Insights Consultancy (CIC), it ranked among the world’s leading laser chip suppliers in 2025 by revenue.
Yuanjie Semiconductor has rapidly capitalised on the AI infrastructure build-out, with full-year 2025 revenue rising 138.5% to 601.4 million yuan, while its shares have climbed nearly ninefold over the past year, according to the South China Morning Post. The stock closed at around 1,100 yuan on Friday, March 27, 2026, ranking second among mainland-listed companies by share price after Kweichow Moutai, with a market capitalisation of approximately 94.6 billion yuan ($13.7 billion).
The IPO filing comes at a time of heightened U.S. export controls on advanced semiconductors, implemented by the U.S. Department of Commerce. These measures are aimed at restricting access to advanced semiconductor capabilities, particularly in China, as part of broader efforts to secure critical technology supply chains.
After the United States imposed export controls on advanced AI chips to China beginning in 2022 and tightened them in subsequent years, chip giant NVIDIA designed modified processors such as the Nvidia H20 to comply with the restrictions while continuing sales to Chinese customers. NVIDIA reported a $4.5 billion charge in the first quarter related to its Nvidia H20 chips, and said it was also unable to ship an additional $2.5 billion worth of H20 products to China after new U.S. export restrictions took effect, the company revealed in its quarterly financial report.
Nvidia has also announced $2 billion investments each in photonics specialists Lumentum and Coherent, alongside multibillion-dollar purchase commitments and priority access to future production capacity.
Recently, the U.S. Department of Justice, in two related cases, has exposed increasingly sophisticated smuggling networks routing restricted AI chips into China .
Also Read: Washington Calls It “Promoting Secure Exports.” But Is It a Chokehold on Global AI?
