China’s CXMT eyes IPO amid global memory-chip market upswing

China’s CXMT eyes IPO amid global memory-chip market upswing

China’s CXMT, the parent of Chinese semiconductor firm ChangXin Memory Technologies, has initiated its initial public offering (IPO) process on the mainland, aiming to bolster growth amidst a global upswing in the memory chip market. The company completed IPO counseling recordation with the China Securities Regulatory Commission (CSRC) [1].

CXMT was founded in Hefei, Anhui Province, in 2016, with a registered capital of 60.19 billion yuan (US$8.34 billion). It holds significant market shares in the DDR4 and LPDDR4 legacy chip markets. The IPO, if successful, would make CXMT the first memory-chip maker to list on the A-share market [1].

The IPO process is a crucial step for CXMT, which is one of the key subsidiaries of CXMT Corp. The company has hired China International Capital Corporation and CSC Financial for the process, although details about the timing and funds to be raised remain unspecified [2].

CXMT’s strategic move comes at a time when the global memory chip market is experiencing a significant upswing. The company operates two semiconductor foundries in China, with its first facility located in Hefei and the second under construction in Beijing. CXMT’s total monthly production capacity is estimated at around 200,000 12-inch wafers [2].

While CXMT has faced challenges, such as potential placement on the U.S. Entity List, it has managed to avoid the trade blacklist. However, it remains subject to U.S. export restrictions, which aim to limit China's DRAM chip manufacturing capabilities [2].

In contrast, Samsung Electronics Co., a leading memory chip manufacturer, has reported a significant drop in its operating profit in the second quarter. The company cited delayed deliveries of its high bandwidth memory (HBM) chips to Nvidia Corp. as a key factor in its sluggish performance [3].

Despite these challenges, Samsung expects an improvement in earnings later this year, citing ongoing individual quality tests of its HBM chips and mass production of the sixth-generation HBM chip (HBM4) in the second half [3].

References:
[1] https://www.scmp.com/tech/article/3317585/chinas-cxmt-eyes-ipo-amid-global-memory-chip-market-upswing
[2] https://www.aol.com/news/chinas-cxmt-corp-starts-ipo-100953199.html
[3] https://www.kedglobal.com/earnings/newsView/ked202507080002