Investors valued the business of Chinese AMD clone maker EPYC at $20.7 billion

To a wide audience, China-based Hygon Information Technology is known for its ill-fated partnership with AMD, which began shortly after Lisa Su took over as CEO, but ended in 2019 after tightening US export control rules.
This week, Hygon stock went public in Shanghai, valuing the company's business at $20.7 billion.Image source: Hygon Information TechnologyFactually, as the Nikkei Asian Review explains, Hygon Information Technology's initial public offering was priced 94 percent higher than estimated, indicating investor confidence in the company's continued business growth.
This developer of central processors and gas pedals for machine learning systems was founded in 2014, the company's development and research spending reaches 70% of its rather modest revenue, which did not exceed $341 million last year.It cannot be ruled out that access to capital in the stock market will allow Hygon to open a new stage in the company's development.
Until 2019, it had access to the technological capacities of TSMC and GlobalFoundries, as it received from them licensed clones of AMD EPYC and Ryzen first-generation processors with the encryption block modified to Chinese national standards.
Later, the U.S.
sanctions limited the ability of Hygon to produce these processors, forcing the company to focus on its own developments.
Investors are likely to be looking at the prospects of increased state investment in the semiconductor sector of the PRC economy, since now it covers only 20% of the national market demand for components, which is far from the target.