CXMT raises billions for DRAM expansion

China's ChangXin Memory Technologies, or CXMT, the world's fourth-largest DRAM maker, has priced its initial public offering at 8.66 yuan a share ahead of its Shanghai debut. The offering is expected to raise 66.6 billion yuan, or about 14.6 trillion won, more than double the company's original target of 29.5 billion yuan.

The larger proceeds give CXMT far greater financial resources to expand production and invest in new technology. That has fueled expectations the company will mount a stronger challenge to Samsung Electronics, SK hynix and Micron, which dominate the DRAM business.

● CXMT targets larger DRAM footprint

According to industry sources Tuesday, CXMT is set to begin trading on the Shanghai Stock Exchange on July 27 after launching its IPO subscription period Wednesday. The offering is expected to become the second-largest IPO in Chinese history. In its prospectus, the company said most of the proceeds will be used to expand DRAM production as the global memory chip market faces a prolonged supply shortage. CXMT also plans to improve yields for DDR5 server DRAM and LPDDR5X mobile memory while investing in the development of next-generation DDR6 products.

CXMT's monthly wafer production capacity is expected to reach 350,000 wafers by the end of this year and 600,000 wafers by 2030, nearing Micron's current monthly capacity of about 385,000 wafers. Market research firm TrendForce estimates that CXMT's share of the global DRAM market rose from 4.1 percent in the first quarter of 2025 to 7.6 percent in the first quarter of this year.

Low prices remain one of CXMT's strongest selling points. As the memory shortage pushes DRAM prices higher, customers may increasingly turn to CXMT products, which typically sell for 5 to 10 percent less than competing chips from the industry's three largest suppliers. Apple has also reportedly begun testing CXMT chips despite continuing U.S. restrictions on China's semiconductor sector.

● South Korea, U.S., China rivalry escalates

Industry observers expect the IPO proceeds to help CXMT expand into the high-bandwidth memory, or HBM, market, a segment with higher margins and growing demand from AI data centers. CXMT's current technology is still considered to be at the level of HBM2, a technology SK hynix successfully commercialized in 2018. However, NH Investment & Securities said in a report Tuesday that the IPO proceeds, combined with cash flow from DRAM sales, could provide sufficient resources for HBM development and related equipment investments.

The race for semiconductor leadership among South Korea, the United States and China is intensifying. Samsung Electronics and SK hynix have pledged a combined 800 trillion won investment in the Honam semiconductor cluster, while Micron has announced plans to invest $250 billion to expand production capacity in the United States.

Industry executives expect AI data center demand to keep the memory chip market undersupplied through at least 2030. Reporting second-quarter earnings Tuesday, ASML CEO Christophe Fouquet said continued investment in AI and rapid technological advances are driving demand for advanced memory chips, further strengthening the outlook for semiconductor industry growth. He added that the trend is accelerating chipmakers' plans to expand production capacity.


최지원 기자 jwchoi@donga.com