CXMT IPO highlights China’s drive to compete with Samsung, SK Hynix

China’s leading maker of DRAM chips, ChangXin Memory Technologies (CXMT), has reportedly moved forward with plans for a major initial public offering (IPO) in Shanghai. 

The company aims to raise 29 billion yuan ($4.22 billion) through the issuance of 10.6 billion shares.

The company’s primary objective is to reach a production capacity of 300,00 wafers per month by 2026.

Having challenged South Korean and U.S. rivals with the launch of its DDR5 DRAM chips last month, CXMT will use the IPO proceeds to upgrade its technology and scale production.

CXMT spearheads China’s efforts to secure a position in the global DRAM market

Founded in 2016, CXMT spearheads China’s efforts to secure a foothold in the global DRAM market, currently dominated by Samsung, SK Hynix, and Micron.

While backing from major investors like Alibaba and Xiaomi, the company has successfully developed four generations of DRAM technology across nine funding rounds.

The company operates three 12-inch DRAM production facilities in Beijing, the capital, and is headquartered in Hefei, located in the eastern province of Anhui.

CXMT held a 5% share of the global DRAM market in the second quarter, while Micron, SK Hynix and Samsung collectively accounted for more than 90%.

The role of chipmakers in advancing high-bandwidth memory(HBM)

According to Reuters, the chipmaker is investing heavily in high-bandwidth memory (HBM), a specialized DRAM crucial for advanced processors like Nvidia’s GPUs used in generative AI.

The primary goal is to begin production by late 2026 at the HBM back-end packaging facility currently under construction in Shanghai's financial district.

In this line, the company expects 2025 revenues to surge as much as 140% year-on-year, driven by rising memory prices and storing growth since July.

CXMT projects are expected to reach profitability as early as 2026, depending on wafer shipments and average prices, following significant losses of 8.32 billion yuan in 2022, 16.3 billion yuan in 2023, and 7.1 billion yuan in 2024.

The company’s recent move toward a listing on the Shanghai Star Market marks a new phase in China's drive for technological self-sufficiency.