China’s Alibaba is preparing to list its semiconductor arm, T-Head, Bloomberg News reported, citing sources familiar with the matter. Following the news, Alibaba’s U.S.-listed shares rose 4.6% premarket.
Employee Stake and IPO Plans
As an initial step, Alibaba plans to restructure T-Head as a business partly owned by employees. The company will then explore an initial public offering, though the timeline remains unclear.
Early Stage and Valuation
The process is still in its early stages. The potential valuation of T-Head has not yet been disclosed. Alibaba did not respond to requests for comment, and Reuters could not immediately verify the report.
About T-Head Semiconductor
Founded in 2018, T-Head is Alibaba’s wholly owned semiconductor unit. It develops processors for data centers, AI applications, and Internet-of-Things products across the full chip design stack.
Alibaba’s AI Ambitions
In November, Alibaba upgraded its AI chatbot with a free consumer-facing app based on its Qwen large language model. The move is part of Alibaba’s effort to compete with domestic rivals in China’s AI race.
