Baidu's semiconductor arm has submitted preliminary paperwork for an initial public offering with a target valuation of $14.7 billion. The company intends to sell a minority stake while retaining majority ownership, though exact float percentages and pricing details are yet to be finalized.

The capital raised is expected to fund the expansion of in-house AI chip design and production capacity, supporting Baidu’s broader push into artificial intelligence infrastructure. This move aligns with the unit’s mission to reduce reliance on third-party processors and capture higher margins on proprietary hardware.

Investor interest in Chinese chip makers has surged following strong performances in major tech stocks this week, positioning Baidu’s chip unit IPO to attract significant demand. The offering could set a benchmark for valuations in the domestic semiconductor sector, with analysts watching for pricing that mirrors global peers.