ChangXin Memory Technologies (CXMT), a leading Chinese maker of dynamic random access memory (DRAM) chips, is planning an initial public offering in Shanghai as early as the first quarter of next year, aiming for a valuation of up to 300 billion yuan ($42 billion), according to two people familiar with the matter.

Founded in 2016 with strong government backing, CXMT is at the forefront of China’s efforts to establish a stronger foothold in the global DRAM market, which has long been dominated by firms from Japan, South Korea, and the United States.

The Hefei-based company is seeking to raise between 20 billion and 40 billion yuan from the listing, the people said. A third person said CXMT’s fundraising target is around 30 billion yuan and that it may publish its prospectus as soon as November.