China’s leading DRAM chipmaker, ChangXin Memory Technologies (CXMT), is preparing to tap domestic capital markets in a move that underscores Beijing’s determination to narrow the gap with dominant global memory giants, even as geopolitical tensions and technology controls continue to reshape the semiconductor industry.
CXMT said on Tuesday that it plans to raise 29.5 billion yuan ($4.22 billion) through an initial public offering of 10.6 billion shares in Shanghai. The company said the proceeds will be used primarily to upgrade production lines and manufacturing technologies, while a portion will be channeled into research and development for advanced dynamic random access memory products.
The planned listing comes just weeks after CXMT unveiled its latest DDR5 DRAM chips, a step that directly challenges industry leaders Samsung Electronics, SK Hynix, and Micron Technology. DDR5 represents the current mainstream standard for high-performance computing, data centers, and advanced consumer electronics, and CXMT’s entry into this segment signals its ambition to move beyond older, lower-margin memory products.
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Founded in 2016 with strong state backing, CXMT has become a central pillar of China’s push for semiconductor self-sufficiency, particularly in memory chips, one of the most capital-intensive and technologically complex segments of the industry. After nine funding rounds, the company counts heavyweight investors including Alibaba and Xiaomi, and has developed four generations of DRAM technology.
Operationally, CXMT runs three 12-inch DRAM fabrication plants, with facilities in Beijing and at its headquarters in Hefei, Anhui province. These fabs form the backbone of its manufacturing capacity as it seeks to scale output and improve yields, both critical to competing with entrenched global players that benefit from decades of process optimization.
Despite its progress, CXMT remains a relatively small player in global terms. According to data from research firm Omdia cited in the prospectus, the company held about 4% of the global DRAM market in the second quarter. By contrast, Micron, SK Hynix, and Samsung together controlled more than 90%, highlighting the steep challenge CXMT faces in translating technological milestones into sustained market share gains.
Beyond conventional DRAM, CXMT is also investing heavily in high-bandwidth memory, a specialized form of DRAM that is essential for advanced processors, including Nvidia’s graphics processing units, widely used in generative artificial intelligence workloads. The company said it aims to begin production by the end of 2026 at an HBM back-end packaging facility currently under construction in Shanghai, positioning itself to benefit from surging global demand tied to AI data centers and accelerators.
Financially, CXMT is still in a loss-making phase, reflecting the enormous upfront costs associated with memory chip manufacturing. The company recorded losses of 8.32 billion yuan in 2022, 16.3 billion yuan in 2023, and 7.1 billion yuan in 2024, with a further loss of 2.3 billion yuan in the first half of this year. However, it expects revenue to surge by as much as 140% year-on-year in 2025, driven by rising memory prices and higher sales volumes since July.
CXMT said it could turn profitable as early as 2026, depending on wafer shipment volumes and average selling prices.
The timing of the IPO is also notable. Global memory markets have begun to recover after a prolonged downturn, with prices rebounding as inventory levels normalize and AI-related demand accelerates. Listing now could provide both the capital and the market validation CXMT needs to fund its next phase of expansion, particularly as access to advanced foreign technology remains constrained.
At a broader level, CXMT’s public market debut would mark a significant milestone in China’s semiconductor strategy. While the company is still far from displacing established global leaders, its progress in DDR5 and its push into HBM show how Chinese chipmakers are methodically climbing the technology ladder.
The IPO is expected to stir interest as it marks the beginning of China’s long-term bets in memory manufacturing to deliver commercial scale and financial sustainability.