Pateo Connect Technology (Shanghai) (HKG:2889) signed a non-binding memorandum of understanding to acquire a controlling stake in a high-performance communication chip designer, according to a Tuesday Hong Kong bourse filing.
The proposed acquisition will be conducted jointly with a fund managed by Ping An Capital, with the size of the stake and consideration yet to be determined.
The target develops high-speed optoelectronic chips, high-performance analog chips, and related modules used in AI data centers, and generated about 310 million yuan in revenue in 2025.
Pateo said the deal would support its expansion into the upstream chip sector and strengthen its integrated "software-hardware-chip-cloud" strategy.