China Mobile Communications Group Co., a Chinese state-owned enterprise (SOE) and also the world’s largest mobile telecommunications corporation by market capitalization, has announced to spin off its semiconductor unit. The now separate company, Xinsheng Technology, was first founded in 2020 under China Mobile IoT department.
Following the spin-off, the chip company will continue to focus on IoT and aims for IPO on Shanghai Stock Exchange STAR Market. The spin-off, moreover, is a part of China’s ongoing project to reform its SOEs in the technology sector, with the goal to introduce various elements of free market to enhance management and stir innovations. So far, a total of 204 SOEs have been selected for the reform program, among them China Mobile, in an attempt to create successful examples.