CXMT parent to list on Shanghai's Star Market on 27th

2026-07-26

CXMT parent to list in Shanghai on 27th

ChangXin Technology Group, the parent of ChangXin Memory Technologies (CXMT), will list through an initial public offering on the Shanghai Stock Exchange's Star Market for tech start-ups on the 27th. The company expects to raise up to 66.6 billion yuan ($9.3 billion). CXMT has the world's fourth-largest production capacity for DRAM used in personal computers and other devices, and some forecasts put it close to U.S. rival Micron Technology, ranked third, by the end of 2026.

DRAM capacity ranks fourth globally

DRAM is a memory semiconductor that temporarily stores data and is used in a wide range of devices, including AI servers, personal computers and smartphones. Demand has risen globally on the back of higher AI investment. After Samsung Electronics in first place, SK Hynix in second and Micron in third, CXMT holds the fourth-largest share.

In a June report, Morgan Stanley forecast that CXMT would add 388,000 wafers a month of DRAM production capacity over the five years from 2023 to 2028, lifting the overall share of Chinese makers from about 18% in 2023 to about 23% in 2028. Counterpoint Research analyst MS Hwang said on the 16th that CXMT's monthly capacity could exceed 300,000 wafers by the end of the year, potentially reaching a level close to Micron's.

Technology gap remains

Even so, a gap remains with major players such as Micron on technology. As semiconductor circuits are made more finely, more memory can be produced from a wafer of the same size, making bit output, which indicates how much memory can be produced from one wafer, important in measuring competitiveness as well as production capacity.

Hwang said CXMT is using manufacturing technology two to three generations behind leading makers, leaving a wide gap in bit output as well. While the three major players, Samsung Electronics, SK Hynix and Micron, produce DRAM on the latest 1c process, CXMT is in the transition phase from 1a to the latest node, leaving it two generations, or about three years, behind technologically.

Focus on equipment localization

The key to whether CXMT can catch up with U.S. and South Korean rivals in miniaturization technology is extreme ultraviolet, or EUV, lithography equipment used to make advanced semiconductors. The equipment is made by ASML of the Netherlands.

Exports of ASML's EUV lithography equipment to China have been facing tighter restrictions. That is because the U.S. government has imposed export controls targeting advanced semiconductor technology, prompting Chinese chipmakers to respond by localizing production equipment.

Semiconductor analyst Jim Handy notes that some of CXMT's engineers came from former European DRAM maker Qimonda. Their experience in design and the shift to mass production is a strength, and he sees the possibility that the company will narrow the gap through miniaturization using domestically made production equipment.

Against the backdrop of rising AI investment, global DRAM prices have climbed about sixfold over the past year, boosting earnings at U.S. chip giants including Micron. If CXMT expands production, causing prices to fall, and also closes the technology gap quickly, it will pose a threat to the U.S. semiconductor industry as well.

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