Espressif Systems plans A-share issuance to fund AIoT expansion

CITIC Securities Company Limited has recommended Espressif Systems' 2025 non-public issuance of A-shares, which aligns with the company's strategic focus on AIoT chips, modules, and development kits. The proposed issuance will raise up to RMB 1,777,876,700 for projects including Wi-Fi 7 router and smart terminal chip R&D, RISC-V IP for AI edge-side chips, and an R&D center in Shanghai. RMB 100,000,000 will be allocated to replenish working capital. The issuance, not exceeding 10% of the total share capital, has been approved by the board and shareholders.

The company's existing research and development team, led by chief executive Teo Swee Ann, boasts over 20 years of experience in wireless communication chip design. Espressif Systems currently holds 101 domestic invention patents, 24 utility model patents, 11 design patents, and 39 overseas invention patents, demonstrating strong innovation capabilities.

Espressif Systems operates on a fabless model, concentrating on chip design, R&D, and sales, while outsourcing manufacturing. The company's products encompass Wi-Fi, Bluetooth, Thread, and Zigbee technologies, with a strategic direction of "processing + connectivity" to offer integrated solutions for the global AIoT market. The proceeds from this issuance will support these core business areas, reinforcing Espressif Systems' competitive edge in the rapidly evolving AIoT landscape.