CXMT Challenges Samsung and SK hynix as It Enters China’s Stock Market Today, Intensifying the Memory Chip Rivalry

[Financial News] ChangXin Memory Technologies (CXMT) will make its debut on China’s mainland stock market on the 27th. Industry watchers say the listing could accelerate CXMT’s efforts to expand production capacity and invest in technology development, further intensifying competition in the global DRAM market.
According to foreign media and industry sources on the 27th, CXMT, one of China’s leading memory chip makers, will begin trading that day on the SSE STAR Market, the technology board of the Shanghai Stock Exchange (SSE).
Through its recent initial public offering (IPO), CXMT issued 6.688 billion new shares at 8.66 yuan each and raised 57.92 billion yuan, or about 12.5 trillion won. That represents 10% of its total shares, implying a market capitalization of 579.2 billion yuan, or about 125.1 trillion won. Including the over-allotment option, the number of new shares could rise to as many as 7.69 billion, and the total offering could reach 66.61 billion yuan, or about 14.4 trillion won.
This IPO is the largest in Asia so far this year and the biggest ever among Chinese semiconductor companies. CXMT plans to use the proceeds to expand production lines and advance DRAM technology. The company is already increasing mass production of cutting-edge DRAM, and last year it reportedly supplied Huawei with samples of its in-house HBM3 based on DDR5. While there remains a significant gap in performance and yield compared with Samsung Electronics, SK hynix and Micron, the move is seen as meaningful because it shows a Chinese company has begun building its own HBM development capabilities.
Its market share is also expanding rapidly. According to Counterpoint Research, Samsung Electronics led the global DRAM market in the first quarter of this year with a 38% share by revenue, followed by SK hynix at 29% and Micron at 22%. CXMT’s share also rose to 8%, up from just around 3% in the first quarter of last year. Analysts say CXMT’s rapid growth is tied to the ongoing reshaping of the memory market in the AI era. As Samsung Electronics, SK hynix and Micron focus on expanding production of high-value products such as HBM and DDR5, which are essential for AI accelerators, supply of commodity DRAM has fallen, and CXMT has quickly moved into that gap.
Meanwhile, major foreign media outlets are predicting that CXMT’s share price could jump on its first day of trading, based on the IPO’s valuation and strong subscription demand. On the STAR Market, there is no limit on price fluctuations during the first five trading days after listing. Foreign media reported that if CXMT rises by about 330% on its first day, it could surpass Industrial and Commercial Bank of China Limited (ICBC), which has a market capitalization of about 2.6 trillion yuan, and become the most valuable mainland-listed stock.
[email protected] Lim Su-bin Reporter