CNBC·2026-01-02 05:08Core Viewpoint - Baidu plans to spin off its AI chip subsidiary, Kunlunxin, and list it in Hong Kong to attract sector-specific investors and expand financing options amid a push for semiconductor self-sufficiency in China [1][3]. Group 1: Spin-off Details - Baidu has confidentially filed a listing application on the Hong Kong Stock Exchange, with details of the offering, including size and structure, still undecided [2]. - The spin-off will require regulatory approvals, including from China's securities watchdog, and there is no guarantee that the spin-off will proceed [2]. Group 2: Strategic Rationale - The spin-off aligns with Baidu's strategy to highlight Kunlunxin's standalone potential and attract investors focused on the semiconductor sector [3]. - Kunlunxin will remain a subsidiary of Baidu after the spin-off [3]. Group 3: Industry Context - The move occurs amid escalating U.S.-China tech tensions, with both countries imposing restrictions on access to advanced AI chips [4]. - Beijing is encouraging domestic chip purchases and has mobilized billions in public funds for development, with several Chinese chipmakers, including Moore Threads and Biren Technology, announcing plans to list [4].