AI Chipmaker Enflame Surges Nearly 200% in Shanghai Market Debut
China’s artificial intelligence chip industry received a major boost on Friday as Tencent-backed Enflame Technology made a spectacular debut on the Shanghai Stock Exchange’s STAR Market.
Enflame raised approximately 6.12 billion yuan ($912 million) through its initial public offering. Its shares opened at 410 yuan, compared with an IPO price of 142.18 yuan, and climbed as high as 475 yuan during early trading—an increase of roughly 200%.
The strong market response highlights growing investor interest in China’s domestic semiconductor sector. Beijing has been encouraging Chinese companies to develop home-grown alternatives to advanced American AI chips amid continuing U.S. export restrictions.
Tencent remains Enflame’s largest shareholder, holding a 17.95% stake after the listing. The technology company was also Enflame’s biggest customer before the IPO, accounting for a substantial portion of its 2025 revenue.
Despite the strong stock-market debut, Enflame has not yet reached profitability. The company reported a narrowing net loss in 2025 while revenue increased by 37%. It expects further revenue growth during 2026 and aims to reach break-even or profitability in 2026 or 2027.
The company plans to use most of its IPO proceeds to develop next-generation AI processors, supporting software and large-scale computing systems. The development reflects China’s broader effort to strengthen its domestic AI infrastructure and reduce reliance on foreign semiconductor technology.
