Memory chips are essential to nearly all modern computing systems. DRAM has become a critical component in AI servers because training and running AI models require large amounts of high-speed memory.
For China, CXMT addresses a strategic vulnerability. Beijing has spent years trying to reduce its dependence on foreign chips and related technologies, a drive that has intensified as the U.S. and its allies have tightened export controls on advanced semiconductors and manufacturing equipment.
CXMT's IPO therefore has significance beyond the capital markets. It is a test of whether China can build a competitive domestic producer in a sector that is still controlled by foreign firms.
CXMT's shareholder base reflects China's state-backed semiconductor financing system. Its prospectus says state-owned shareholders held 36.29% before the IPO. Its major state-linked shareholders include local-government-related investors, Anhui Investment Group and China's National Integrated Circuit Industry Investment Fund Phase II, commonly known as the "Big Fund."
A key figure behind CXMT is Zhu Yiming, founder of GigaDevice Semiconductor 603986.SS, a Chinese memory chip design firm known for NOR flash memory, which is used to store code in electronics. Company filings describe him as central to the creation and development of CXMT. He brought memory-chip industry experience to the table and later became chairman of the company.
Despite becoming the world's No. 4 DRAM maker, CXMT remains behind industry leaders in advanced memory technologies, especially in high-bandwidth memory (HBM) chips, which are crucial to building AI accelerators from companies like Nvidia NVDA.O.
Samsung and SK Hynix dominate the HBM market and benefit from decades of manufacturing expertise, process technology and global customer qualification. Micron is also a major advanced memory supplier.
CXMT's advantage lies elsewhere: it benefits from strong policy backing, access to state-linked financing and growing demand from domestic customers seeking alternatives to foreign suppliers. Those advantages could help it expand its market share even as it trails global rivals technologically.
Beyond the memory industry's volatile boom-and-bust cycle, CXMT also faces risks from U.S. export controls that limit its access to advanced chipmaking tools from suppliers like ASML ASML.AS. This has made it more difficult to narrow the technological gap with its global rivals.
The company also faces geopolitical risks. The U.S. Department of Defense last month designated CXMT as a "Chinese Military Company" and Reuters has previously reported that CXMT was approved by a U.S. interagency committee for addition to the Entity List, though that has not yet been implemented.
CXMT plans to use the proceeds from its IPO to expand production capacity, upgrade manufacturing technology and fund research and development, according to its prospectus.
CXMT plans a large IPO in Shanghai
China's ChangXin Memory Technologies (CXMT) 688825.SS expects to raise at least 57.9 billion yuan ($8.6 billion) this month in an initial public offering on Shanghai's Nasdaq-style STAR Market in what would be Asia's largest share sale so far this year.
The offering, which could rise to 66.6 billion yuan if the over-allotment option is exercised, would mark a major milestone for a company that has grown to become China's leading maker of DRAM memory chips and a symbol of Beijing's push toward technological self-reliance.
What CXMT makes and why it matters
CXMT is China's top maker of dynamic random-access memory (DRAM) chips, which provide short-term memory for smartphones, personal computers, servers, artificial intelligence systems and other electronics.
The global DRAM market has long been dominated by Samsung Electronics 005930.KS, SK Hynix 000660.KS and Micron Technology MU.O. CXMT is the world's fourth-largest DRAM maker and had a market share of about 7.7% in 2025, according to its IPO prospectus.
The company's growth has accelerated during a global memory-chip upcycle that began last year, fuelled by AI-related demand, which has boosted prices and spending on advanced memory products.
Its first-quarter revenue jumped 719% from a year earlier to 50.8 billion yuan ($7.51 billion), according to its prospectus. In the first half of this year, revenue is expected to hit 110 billion to 120 billion yuan, nearly doubling its full-year 2025 tally of 61.8 billion yuan.
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