Biren Technology to raise 4.02 billion yuan for AI chip production

Biren Technology has announced a new share placement to raise approximately 4.02 billion yuan. The company intends to issue 130 million new shares at a price of 31.08 yuan per share, representing a discount of roughly 9.76% from its previous closing price.

The proceeds are earmarked for several strategic areas: approximately 70% will be used for strategic supply chain procurement, production preparation, and the commercialization of next-generation AI chips, with an expected completion by the end of 2027. About 20% is allocated to enhancing research and development capabilities and the software ecosystem by late 2029, while the remaining 10% will serve as working capital and general corporate purposes.

Biren stated that its next-generation products have completed initial testing and have entered the post-tape-out verification stage, progressing faster than anticipated. The company noted that this capital raise is a prudent move to secure upstream capacity and shorten product time-to-market amidst strong demand for AI computing power and supply chain constraints.