China’s leading dynamic random-access memory (DRAM) chipmaker, ChangXin Memory Technologies (CXMT) Corp, said on Tuesday it plans to raise 29.5 billion yuan ($4.22 billion) through an initial public offering in Shanghai.
In a prospectus filed with the Shanghai Stock Exchange, CXMT said it will offer 10.6 billion shares in the listing, with proceeds primarily earmarked for upgrading manufacturing lines, investing in advanced chip technologies and strengthening research and development.
The announcement comes as China intensifies its push for semiconductor self-sufficiency amid escalating geopolitical tensions and continued U.S.-led export controls targeting advanced chip technologies.
Founded in 2016 with backing from state-linked funds, CXMT has emerged as the country’s flagship effort to build a domestic DRAM industry capable of competing with market leaders Samsung Electronics and SK Hynix of South Korea and Micron Technology of the United States.
Last month, CXMT unveiled its latest generation of DDR5 DRAM chips, marking a significant milestone in China’s memory chip ambitions and positioning the company more directly against established international players.
The company said part of the IPO proceeds will also be used to fund research into next-generation DRAM products, including high-bandwidth memory (HBM), a specialised type of memory critical for high-performance computing and artificial intelligence applications such as Nvidia’s graphics processors.
CXMT said it is building an HBM back-end packaging facility in Shanghai and aims to begin production there by the end of 2026.
The company currently operates three 12-inch wafer fabrication plants — two in Beijing and one at its headquarters in Hefei, Anhui province — and has completed nine rounds of financing, attracting investors including Alibaba and Xiaomi.
Despite rapid technological progress, CXMT remains a small player in the global DRAM market. It held a 4% share of global DRAM shipments in the second quarter, according to data from research firm Omdia cited in the prospectus. By contrast, Samsung, SK Hynix and Micron together controlled more than 90% of the market.
The company has so far developed four generations of DRAM technology, but profitability has remained elusive. CXMT reported losses of 8.32 billion yuan in 2022, 16.3 billion yuan in 2023 and 7.1 billion yuan in 2024. It posted a loss of 2.3 billion yuan in the first half of this year.
However, CXMT said it expects revenue to grow by up to 140% year-on-year in 2025, driven by a rebound in global memory prices and rising shipment volumes since mid-2025.
The company said it could turn profitable as early as 2026, depending on market conditions including wafer output, pricing and demand from downstream customers.
Analysts say the IPO reflects both China’s strategic commitment to semiconductor independence and the substantial capital intensity of memory chip manufacturing, which requires continuous investment to keep pace with rapid technological change.
($1 = 6.9885 yuan)
