Baidu’s artificial intelligence chip unit is planning an initial public offering in Hong Kong that could raise up to $2 billion, according to people familiar with the matter.

The listing would mark a major step in Baidu’s efforts to spin out and commercialize its semiconductor business as China pushes to strengthen its domestic chip supply chain amid ongoing geopolitical and technology tensions.

The people said the unit is in preliminary discussions with advisers and regulators, and the size and timing of the IPO are still subject to market conditions and approval processes.

Baidu did not immediately respond to a request for comment.