Alibaba has confirmed that its artificial intelligence chip subsidiary, T-Head, has received preliminary approval from the Hong Kong Stock Exchange for a proposed public listing.

The development represents an important step in the Chinese technology giant’s efforts to strengthen its position in the semiconductor and artificial intelligence industries.

Founded in 2018, T-Head develops chips for data-centre computing, storage and networking. Its products are part of Alibaba’s wider technology strategy, which includes cloud computing, AI infrastructure and digital services.

The proposed listing could provide the subsidiary with additional access to capital, allowing it to expand research, product development and commercial operations.

However, the size of the planned offering has not yet been announced. The company must also obtain final approval from the Hong Kong Stock Exchange and relevant mainland Chinese regulators before proceeding.

Alibaba intends to retain T-Head within its wider corporate structure after the proposed flotation, meaning the listing would not necessarily represent a complete separation of the chip business from the parent company.

The development comes as Chinese technology firms seek to reduce dependence on foreign semiconductor suppliers and strengthen domestic capacity in advanced computing.

AI chips have become strategically important because they power the data centres and computing systems required to train and operate increasingly sophisticated artificial intelligence models.

China’s efforts to develop competitive domestic semiconductor technologies have gained additional urgency amid US restrictions on exports of advanced computing chips.

T-Head’s proposed listing could therefore become an important test of investor appetite for Chinese semiconductor companies and the country’s wider ambitions in AI infrastructure.