China’s leading memory-chip manufacturer, ChangXin Memory Technologies (CXMT), is considering building a second dynamic random access memory (DRAM) fabrication plant in Beijing as it accelerates a multibillion-dollar expansion aimed at capitalizing on surging global demand for AI memory chips and strengthening China’s semiconductor self-sufficiency ambitions.
According to two sources who spoke to Reuters, CXMT is negotiating financial support with the Beijing Economic-Technological Development Area, widely known as Yizhuang, as well as state-backed technology investment entities, in what could become another major investment in China’s rapidly expanding memory-chip industry.
The proposed facility would add to an aggressive capacity expansion already underway following the company’s record $8.6 billion initial public offering last month, the largest semiconductor listing ever completed on mainland China’s stock market.
Register for Tekedia Mini-MBA edition 20 (June 8 – Sept 5, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Expansion Fueled By AI-Driven Memory Demand
The discussions come at a time when demand for high-performance memory chips has accelerated worldwide, driven by unprecedented investment in artificial intelligence infrastructure. The rapid deployment of AI servers, hyperscale data centers, and advanced computing systems has significantly increased demand for DRAM, a critical component used to process and store data in AI workloads.
The resulting supply constraints have created favorable market conditions for memory manufacturers, encouraging companies worldwide to expand production capacity.
For CXMT, the market upcycle provides an opportunity to scale production while narrowing the technological gap with global industry leaders. The company’s shares have risen approximately 13% since its stock market debut, reflecting investor confidence in long-term demand for memory semiconductors.
Sources said the proposed fabrication plant would be located in Yizhuang, roughly 20 kilometers southeast of central Beijing, where CXMT already operates a 12-inch DRAM fabrication facility through its subsidiary Changxin Jidian.
The company is seeking at least 60 million yuan ($8.9 million) in support from the development zone’s governing authority, while several state-owned technology enterprises have also expressed interest in participating in the financing.
The negotiations remain at an early stage, and both the funding structure and investment size could change before any final agreement is reached. It is also unclear whether financing would come directly from the development zone’s administrative authority or through affiliated state-backed investment vehicles.
Part of A Nationwide Manufacturing Expansion
The proposed Beijing project represents only one component of a much broader manufacturing expansion. Reuters previously reported that CXMT is already constructing new fabrication facilities in Shanghai and Hefei, while also holding discussions with additional local governments regarding future production sites.
When fully operational, those projects could increase the company’s production capacity to more than 600,000 wafers per month, approximately doubling its current manufacturing capability.
Industry estimates suggest that constructing a leading-edge 12-inch DRAM fabrication plant typically requires investments exceeding $10 billion, reflecting the enormous capital intensity of advanced semiconductor manufacturing.
Currently, CXMT operates three 12-inch DRAM fabrication plants—two in Hefei and one in Beijing—with each facility capable of producing roughly 100,000 wafers per month, according to sources familiar with the company’s operations.
The expansion also exposes the intensifying competition among Chinese regional governments seeking to attract strategically important semiconductor projects. Cities now view advanced chip manufacturing as both an economic growth engine and a national strategic priority, offering financing, tax incentives and infrastructure support to secure investments.
CXMT’s development has become closely associated with China’s so-called “Hefei model,” under which the Anhui provincial capital has successfully nurtured advanced technology companies through extensive government-backed financing and industrial policy.
Sources familiar with the matter said Beijing and Shanghai have likewise provided financial backing and policy support as each city seeks to strengthen its position within China’s semiconductor ecosystem.
The company’s existing Beijing operation already received investment from E-Town Capital, the state-backed investment arm of the Yizhuang development zone, alongside its affiliate Beijing E-Town Technology.
Although CXMT remains significantly smaller than the world’s dominant memory manufacturers, it has rapidly emerged as China’s national champion in DRAM production. According to Counterpoint Research, global DRAM production remains heavily concentrated, with Samsung Electronics, SK Hynix and Micron Technology controlling nearly 90% of the global market during the first quarter.
CXMT is currently the world’s fourth-largest DRAM producer but continues to trail the industry’s established leaders in both scale and technological sophistication.
Within China, however, its position has strengthened considerably.
Reuters reported last month that the company has begun raising DRAM prices for domestic customers, including Huawei, indicating growing pricing power as Chinese manufacturers increasingly rely on locally produced memory chips.
Memory chips are among the most critical components powering artificial intelligence, cloud computing, smartphones and high-performance computing systems, making domestic manufacturing a strategic priority for Beijing as technology competition with the United States intensifies.
Washington has continued to impose stringent export controls restricting China’s access to advanced semiconductor equipment and high-end AI chips, prompting Beijing to accelerate investment across the domestic semiconductor supply chain. Expanding indigenous DRAM production reduces China’s dependence on overseas suppliers while supporting national efforts to build a more resilient technology ecosystem capable of sustaining AI development despite external restrictions.
However, ChangXin Memory Technologies has become one of the cornerstones of China’s semiconductor self-sufficiency strategy, benefiting from years of state-backed investment aimed at building domestic capabilities in advanced memory manufacturing. While China has made significant progress in logic chip production through companies such as Semiconductor Manufacturing International Corporation (SMIC), memory semiconductors remain one of the country’s most strategically important areas for expansion.