CXMT plans $42B Shanghai IPO as China ramps up chip ambitions: report

Chinese memory chipmaker ChangXin Memory Technologies (CXMT) is preparing for an initial public offering in Shanghai as early as the first quarter of next year, targeting a valuation of up to 300 billion yuan ($42.12 billion), Reuters reported on Tuesday, citing sources familiar with the matter.

Founded in 2016 with strong government backing, CXMT has become the flagbearer of China’s drive to establish its own semiconductor ecosystem.

The company aims to raise between 20 billion and 40 billion yuan through the IPO, with one source estimating about 30 billion yuan as the most likely target.

A formal prospectus could be filed as early as November, the report said.

The report said the offering’s size and timeline could still shift depending on market conditions.

The move comes amid a sharp rally in China’s semiconductor sector, with the benchmark CSI CN semiconductor index up about 49% so far this year.

Investors back China’s chip self-sufficiency drive

CXMT’s IPO is expected to attract strong interest from domestic investors betting on China’s strategic bid for self-sufficiency in critical technologies.

The company has already begun the official “counselling process” for a listing, hiring state-owned investment banks China International Capital Corporation (CICC) and CSC Financial as joint sponsors.

While CXMT has not confirmed details of its IPO, the offering would mark a milestone for China’s chip ambitions, especially as the US tightens export restrictions on advanced semiconductor technologies.

The company is China’s leading producer of dynamic random access memory (DRAM) — a vital component in smartphones, computers, and servers — and is investing heavily in next-generation high bandwidth memory (HBM).

This specialised form of DRAM powers advanced processors, including Nvidia’s GPUs, used in generative artificial intelligence systems.

Push into rarefied chipmaking space

CXMT’s growth has become increasingly significant after Washington’s decision to curb China’s access to advanced memory chips last year.

The company is now expanding capacity and building an HBM packaging facility in Shanghai, expected to begin operations by the end of 2025.

Initial monthly output of HBM wafers will be around 30,000, or about one-fifth of South Korea’s SK Hynix, according to the report.

CXMT aims to begin mass production of fourth-generation HBM3 chips in 2026.

“CXMT could still be around four years behind SK Hynix in advanced memory, but its progress is rapid and strategically aligned with China’s national goals,” said Choe Jeongdong, senior analyst at TechInsights.

Global market shifts bolster chip demand

The global memory market is tightening amid soaring demand for AI-related hardware.

The shift has benefited DRAM and HBM makers, even as geopolitical tensions continue to reshape supply chains.

Micron Technology, the US-based memory giant, is reportedly winding down its China server-chip business after Beijing restricted its products from critical infrastructure use.

Analysts expect CXMT’s capital expenditure to reach as high as $7 billion through 2024, with steady growth in 2025, assuming no new US sanctions.

If successful, CXMT’s listing could become one of the largest in Shanghai in recent years — a symbol of China’s determination to strengthen its semiconductor independence amid an increasingly fragmented global tech landscape.