As AI models trigger a computing power revolution, data centers are experiencing an exponential surge in demand for high-speed data transmission. Interconnect chips, serving as core components to overcome the "memory wall" bottleneck, are becoming a crucial battleground in the tech industry. On January 5, 2026, global memory interconnect chip leader Montage Technology Co.,Ltd. (688008.SH) passed a listing hearing on the Main Board of the Hong Kong Stock Exchange, aiming to raise funds to bolster its R&D and commercial deployment. This chip design company, which holds influence in JEDEC international standards and commands a top-three global market share, is leveraging over two decades of technical expertise to accelerate its expansion into new frontiers like PCIe/CXL and optical interconnects.
Montage Technology's core competitiveness in the technology-intensive semiconductor industry stems from building a dual barrier of "R&D innovation + standards influence." As of September 30, 2025, the company had accumulated 208 patents (including 207 invention patents) and 95 integrated circuit layout design exclusive rights. From 2022 to 2024 and the first three quarters of 2025, its cumulative R&D expenses reached 25.4 billion yuan. Montage is one of the few global suppliers capable of providing the full series of memory interface chips from DDR2 to DDR5. The company's invented DDR4 "1+9" distributed buffered memory subsystem architecture was adopted by JEDEC as the LRDIMM international standard, resolving the conflict between high capacity and high speed in memory subsystems. In the DDR5 generation, this architecture was upgraded to a "1+10" configuration, giving rise to the MRDIMM international standard, while the company's second-generation DDR5 MRCD/MDB chips achieve the industry's current highest data rate of 12800 MT/s. In high-speed SerDes technology, its self-developed 32GT/s IP has been applied to PCIe 5.0/CXL 2.0 Retimer chips and secured large-scale customer procurement in 2024. Its 64GT/s SerDes IP is also being applied to PCIe 6.x/CXL 3.x Retimers.
Leveraging its technological and standards advantages, Montage Technology holds a leading position in the global interconnect chip market. In the memory interconnect chip segment, according to Frost & Sullivan data, the company ranked first globally in 2024 with a 36.8% market share, forming a stable tripartite structure with Renesas and Rambus that collectively occupies over 90% of the market. In the PCIe Retimer niche, the company has rapidly emerged as a rising contender, ranking second globally in 2024 with a 10.9% market share. Regarding customer structure, direct sales accounted for 84.7% of revenue in the first three quarters of 2025, with its top five customers all being industry leaders, providing solid support for performance growth through long-term, stable partnerships.
Currently, the global high-speed interconnect chip market is entering a golden growth period, and Montage Technology's Hong Kong listing aims to further help it seize industry opportunities, unlocking growth potential across products, markets, and technology. At the industry level, demand for interconnect chips continues to explode. A Frost & Sullivan report indicates that AI server shipments are projected to have a CAGR of 21.2% from 2025 to 2030. Data center architecture is upgrading towards an integrated model of "computing power + storage power + transmission power," making high-speed interconnect a core necessity. Frost & Sullivan forecasts the global high-speed interconnect chip market will grow from $15.4 billion in 2024 to $49.0 billion by 2030, representing a CAGR of 21.2%. Within this, the memory interconnect chip segment is expected to see a CAGR of 27.4%, and the PCIe/CXL interconnect chip segment a CAGR of 26.7%.
To capitalize on these industry opportunities, Montage Technology plans to allocate the net proceeds from its Hong Kong listing primarily towards R&D in cutting-edge interconnect chip technologies, commercialization enhancement, strategic investments, and working capital supplementation. On the R&D front, it will continue focusing on core directions like DDR6 iteration, higher-speed SerDes technology, and optical interconnect chips. On the commercialization side, it will further expand its global customer network and deepen cooperation with cloud service providers and server OEMs/ODMs. Strategic investments will be deployed across the industry chain to strengthen ecosystem synergy. With ample funding reserves and technical accumulation, the company is well-positioned to capture a larger market share during the AI infrastructure boom.
In summary, as a leader in the global interconnect chip arena, Montage Technology has built a difficult-to-replicate competitive advantage through technological leadership, standards influence, and robust financial performance. This Hong Kong listing represents a significant step in its internationalization strategy, injecting strong momentum for its role in the AI-driven interconnect revolution. While the company faces potential risks from industry cyclicality, customer and supply chain concentration, accelerating technology iterations, and geopolitical and regulatory changes, the gradual implementation of its fundraising projects is expected to deepen its strategic layout in technology R&D, market expansion, and ecosystem synergy. Against the backdrop of an expanding global high-speed interconnect chip market, the company is poised to further consolidate its leading position.
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