Explainer-What is CXMT and how did it become China’s DRAM champion?
By Eduardo Baptista
BEIJING, July 15 (Reuters) – China’s ChangXin Memory Technologies (CXMT) 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.
Below are some facts about CXMT and why it is capturing investor attention.
WHAT IS CXMT?
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, SK Hynix and Micron Technology. 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.
WHY IS CXMT IMPORTANT?
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.
WHO IS BEHIND CXMT?
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.”