Investors value Chinese clone maker AMD EPYCs business at 207

Investors value Chinese clone maker AMD EPYC’s business at $20.7 billion

Chinese company Hygon Information Technology is widely known for its not-so-successful collaboration with AMD, which began shortly after Lisa Su took over as CEO but ended in 2019 after US export controls were tightened. Hygon shares went public in Shanghai this week, valuing the company’s business at $20.7 billion.

    Image source: Hygon Information Technology

Image source: Hygon Information Technology

Indeed as explained Nikkei Asian Review, Hygon Information Technology’s IPO came at a price 94% higher than its estimated price, showing investor confidence in the company’s continued growth. This developer of CPUs and accelerators for machine learning systems was founded in 2014, the company’s R&D spending reaches 70% of its rather modest turnover, which did not exceed $341 million last year.

It cannot be ruled out that access to capital on the stock exchange will allow Hygon to start a new phase in the company’s development. By 2019, she had access to the technology capabilities of TSMC and GlobalFoundries, ever since receive of them are licensed clones of first-generation AMD EPYC and Ryzen processors with an encryption block adapted to Chinese national standards. Subsequently, US sanctions limited Hygon’s ability to manufacture these processors and forced the company to focus on its own developments. Investors are likely to linger on the prospect of intensifying public investment in the semiconductor sector of China’s economy, which currently accounts for only 20% of the national market’s component needs, which is far from targets.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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