BIDU(US:BIDU) 3 6 Ke·2026-01-15 00:05Core Viewpoint - Baidu's Kunlun Chip is set to go public, marking a significant IPO in the Chinese semiconductor industry, as the company aims to capitalize on the rising demand for computing power in China [1][4][8]. Group 1: Company Background and Development - Kunlun Chip, originally part of Baidu's AI chip division, was spun off in 2021 with an initial valuation of 13 billion RMB [1][6]. - The chip development began in 2011, with a team formed from top companies like Qualcomm and Tesla, leading to the launch of the first Kunlun chip in 2018, which achieved a computing power of 260 Tops [2][3]. - By 2021, Kunlun Chip became an independent entity, rapidly advancing with multiple product generations and significant market deployments [3]. Group 2: Financial Performance and Market Position - Kunlun Chip has secured major contracts, including a significant order from China Mobile, with projected sales reaching 3.5 billion RMB in 2025 and 6.5 billion RMB in 2026 [7][9]. - The company has attracted a diverse range of investors, including BYD and various venture capital firms, enhancing its financial backing and market credibility [6][7]. Group 3: IPO Significance and Market Context - The IPO is anticipated to elevate Kunlun Chip's profile among clients and investors, potentially increasing Baidu's market valuation significantly [7][9]. - The current IPO wave in the semiconductor sector, highlighted by successful listings of competitors like Wallen and Moore Threads, underscores the urgency for Baidu to capitalize on its market position [8][9]. - Analysts suggest that if Kunlun Chip achieves a valuation similar to that of Cambricon, Baidu's stake could be worth up to 22 billion USD, representing a substantial portion of its total market value [9].