China’s AI Server Specialist xFusion Takes First Step Toward IPO as Tech Sector Surges

xFusion, a spin-off from Huawei that has grown into a dominant player in China’s AI server market, reported sales exceeding 40 billion yuan (about $5.7 billion) in 2024. The company signed an agreement with Citic Securities at the end of 2025 for IPO “tutoring,” a preparatory phase in which executives are trained on regulatory compliance, financial reporting, and governance ahead of a formal listing. This tutoring period, expected to run through spring 2026, is a routine yet pivotal step in China’s highly structured regulatory framework for public offerings and demonstrates xFusion’s readiness to access public capital.

The anticipated IPO of xFusion comes as part of a broader trend of Chinese technology firms entering public markets, particularly those focused on AI and semiconductor infrastructure. Chinese authorities have streamlined IPO approvals and provided incentives for high-tech listings in an effort to foster domestic champions capable of withstanding global competition and export curbs, especially from the United States. Other companies in this wave include AI model developers and semiconductor fabricators, with several such firms already completing successful listings in Hong Kong and mainland exchanges, attracting strong investor interest.

xFusion’s strategic importance extends beyond its financial performance; its technology underpins critical computing infrastructure used by telecoms, finance, transportation, and internet service providers. By providing high-performance AI servers and integrated computing solutions, the company supports the deployment of advanced AI applications across industries. Its leadership position in this segment is bolstered by China’s broader national strategy to achieve technological self-sufficiency and reduce dependency on Western suppliers, particularly amid ongoing export controls on high-end chips and computing gear that restrict access to certain U.S. technologies.

Investors are watching closely as xFusion’s IPO progresses, since its valuation and market reception could set benchmarks for other Chinese tech listings. A successful listing would not only provide xFusion with capital to accelerate research and expand production but also signal to the market that Chinese tech firms can thrive amid geopolitical headwinds. Market analysts believe that the momentum in AI and computing infrastructure listings may continue into 2026 as domestic and international demand for AI solutions remains robust. As China’s capital markets increasingly embrace technology icons like xFusion, the broader narrative of China’s technological ascent and shifting balance in global tech leadership gains further validation.