China DRAM Maker CXMT Targets $4.2B IPO as It Takes on Samsung, SK Hynix, Micron

Summary

On the evening of December 30, Chinese DRAM leader ChangXin Memory Technologies Group Co., Ltd. (CXMT) formally submitted its prospectus to the Shanghai Stock Exchange, applying for a listing on the STAR Market. The offering is being sponsored by state-backed investment bank CICC and Chinese securities firm CSC Financial.CXMT plans to raise up to CNY 29.5 billion, equivalent to approximately USD 4.22 billion, with proceeds earmarked for three core projects: upgrading mass-production DRAM wafer manufacturing lines, advancing DRAM process technologies, and funding forward-looking research and development for next-generation dynamic random-access memory.The company said its current capacity already ranks first in China and fourth globally, but still lags the world's top three DRAM makers. With China remaining the world's largest DRAM consumption market, CXMT said the planned investments will accelerate process upgrades, reduce unit costs, enhance profitability, and better meet strong downstream demand, helping the company secure a more favorable position in the global DRAM market.Founded in 2016, CXMT was established against the backdrop of heavy global DRAM concentration, with more than 90% of the market long dominated by Samsung Electronics, SK Hynix, and Micron Technology. CXMT said it has since broken through key DRAM technologies and achieved independent design, development, and commercial mass production, filling a long-standing gap in mainland China's DRAM industry.Today, CXMT is China's largest and most technologically advanced integrated DRAM manufacturer, operating under an IDM model that spans R&D, design, and fabrication. Its product portfolio covers DDR and LPDDR families, including DDR4, DDR5, LPDDR4X, and LPDDR5/5X, serving applications such as servers, mobile devices, PCs, smart vehicles, and AI-related systems.The company launched its first self-developed 8Gb DDR4 product in September 2019, marking what it called a "from zero to one" breakthrough for C...