HK Grey Market | Chinese Semiconductor Designer Montage Technology Jumps 50%

Chinese semiconductor designer Montage Technology jumped 50% in Hong Kong grey market trading.

Founded in 2004, Montage Technology designs fabless integrated circuits, which are used to speed data flow between chips in servers and data centres.

It raised $71 million in a Nasdaq IPO in September 2013 but was taken private a year later by state-owned Shanghai Pudong Science and Technology Investment Co.

It relisted on Shanghai's STAR Market in 2019 and now boasts a market cap of about $22 billion. Its shares have almost doubled in value over the last year, LSEG data shows.

Citing consulting firm Frost & Sullivan, a draft prospectus filed with the Hong Kong exchange showed Montage held a 36.8% share of the global memory interconnect chip market in 2024.

Revenue increased 59% from 2023 to 2024, to 3.64 billion yuan ($521.27 million), with a net profit of 1.34 billion yuan and a gross margin above 58%, according to the prospectus.

The company plans to use proceeds from the listing to boost research and development in interconnect chips, invest in marketing and pursue strategic investments.