After years of delays, Priortech’s $1 billion China chip asset heads for the public market
Access is preparing for a possible Shenzhen IPO as China races to build its semiconductor industry, but investors remain cautious about the value of Chinese assets.
After at least five years of repeatedly announcing that the IPO of its Chinese subsidiary Access was “just around the corner,” Priortech is finally approaching a potential turning point.
The company announced on Friday that the Listing Committee of the Shenzhen Stock Exchange will hold a hearing on Thursday on whether to approve Access’ prospectus. If the exchange approves the prospectus, company management estimates that approval from the China Securities Regulatory Commission will be received within approximately 20 business days, allowing the IPO and listing to be completed by the end of September 2026.
The timing could work in Access’ favor. The company operates in the field of advanced packaging and substrates for the semiconductor industry, one of the areas where China is investing heavily as part of its effort to reduce dependence on American and Taiwanese technologies. At the same time, the artificial intelligence boom continues to drive demand across the semiconductor supply chain, far beyond chip manufacturers themselves.
Access does not manufacture chips. Instead, it develops, manufactures, and markets advanced organic substrates and packaging solutions used by semiconductor companies. The company was founded in 2006 by Amitec, a subsidiary of Priortech, together with a Chinese partner and additional investors, with the goal of commercializing technology developed by Amitec.
Priortech, which is traded on the Tel Aviv Stock Exchange at a market value of approximately NIS 4 billion, holds 74% of Amitec. Amitec, in turn, owns 40% of Access, meaning Priortech’s effective indirect holding in Access stands at approximately 29.4%.
The planned IPO comes amid growing momentum in China’s semiconductor industry. Chinese artificial intelligence company DeepSeek announced last week that it is developing a dedicated AI chip designed primarily for running existing models, with production expected to be outsourced to an external foundry. The move mirrors strategies adopted by Google, Amazon, Microsoft, and Meta, and reflects China’s broader push to build a more independent semiconductor supply chain.
Against this backdrop, at least seven semiconductor companies were listed on the Shenzhen Stock Exchange during the first half of 2026.
Priortech has already benefited from investor enthusiasm surrounding the chip sector. Its largest holding is Camtek (21.2%), which develops optical inspection and metrology systems for semiconductor manufacturing. Since the launch of OpenAI’s ChatGPT in November 2022, Camtek’s stock has surged approximately 444%, reaching a market value of nearly NIS 20 billion, while Priortech’s share price has risen approximately 336%.
The company now hopes that Access’ IPO will provide another source of value creation.
Access generated revenue of approximately $290.6 million in 2025 and is currently operating at an annual revenue run rate approaching $400 million. The company reported net profit of $42.7 million and EBITDA of $87.4 million, representing an EBITDA margin of roughly 30%.
The valuation for the offering has not yet been disclosed. However, market estimates suggest Access could raise approximately $200 million through the sale of up to 15% of its shares, implying a pre-money valuation of roughly $1.1 billion. The company has not yet confirmed these figures.
“Even if it is an offering of $200 million, it is better than the current situation,” Priortech CEO Rafi Amit told Calcalist. “Over time, we will be able to return money to Israel through the sale of shares. Investors in Access understood that the way to realize the investment and establish a valuation was through a public offering.”
According to Amit, Priortech’s current market value reflects almost exclusively its stake in Camtek, while investors assign little value to Access. “I understand that. For investors, China is a kind of ‘black hole,’ so they choose not to price the holding. The offering is expected to finally attach a price tag to the asset. After a three-year lock-up period, we will be able to sell shares and return capital to Israel.”
Amit attributed the lengthy delay in the IPO process to regulatory complications following changes among Access’ shareholders.
“The offering really took much longer than we predicted. It was already close to being completed, but one of our partners from the Tsinghua Unigroup group entered insolvency at the end of 2021. Replacing the partner required us to wait at least two years before the process could be reopened under Chinese regulatory rules,” he said.
“I understand the market’s skepticism, because in China it is really difficult to know,” Amit added. “But for me, the fact that we have reached the discussion stage with the stock exchange’s Listing Committee is a very positive indication.”
Amit said Priortech’s role in Access would gradually decline after the IPO. “In the past, we were very involved in management and strategy at Access, but after it becomes a public company, we will gradually reduce our holding and our involvement.”
Despite the progress, investors remain cautious given the long history of delays. For years, Priortech said that Access was close to going public, only for the process to be postponed repeatedly.
Omri Velvart, founder of hedge fund Legacy Value Partners, believes the IPO could create positive momentum for Priortech’s stock, but questions whether it will generate significant long-term economic value.
“The question is not only whether there will be an IPO, but what a Chinese asset is really worth to an Israeli or Western investor,” Velvart said. “Even if Access is issued at a high valuation, there is a limit on the ability to transfer dividends out of China, and therefore the economic value to Priortech shareholders may be lower than the value on paper.”
He noted that Western companies with assets in China are often traded at a discount because investors assign a lower value to such holdings due to geopolitical and regulatory risks.
At the same time, Velvart acknowledged that Access operates in a sector aligned with Chinese government priorities: strengthening domestic production of critical semiconductor components.
