China’s CXMT Plans $42 Billion Shanghai IPO to Power Chip Self-Sufficiency Drive
Chinese memory chipmaker ChangXin Memory Technologies (CXMT) is planning a blockbuster initial public offering in Shanghai early next year, targeting a valuation of around 300 billion yuan ($42 billion), according to sources familiar with the matter. The state-backed firm aims to raise between 20 billion and 40 billion yuan, with a formal prospectus expected as soon as November.
Founded in 2016, CXMT has become China’s top producer of dynamic random access memory (DRAM) chips, a market long dominated by global giants such as Samsung, SK Hynix, and Micron. The company is investing aggressively to catch up in high-bandwidth memory (HBM) technology which is a crucial component in AI processors like Nvidia’s GPUs.
The IPO comes as China doubles down on semiconductor self-reliance following U.S. export restrictions that block access to advanced HBM chips. Analysts say domestic investors are likely to show strong support for the offering, viewing CXMT as a cornerstone of China’s chip strategy.
CXMT’s capital expenditure is estimated at $6–7 billion for 2023 and 2024, with another 5% increase expected in 2025. The firm is building an HBM packaging plant in Shanghai and plans to start production by late 2025, with an initial output capacity of 30,000 wafers per month - roughly one-fifth that of SK Hynix. Mass production of HBM3 chips is targeted for 2026, though the company remains several years behind global competitors.
The planned IPO also reflects growing investor confidence in China’s semiconductor sector. The CSI Semiconductor Index has risen about 49% year-to-date, driven by optimism over AI-related demand and national investment in chip manufacturing.
If successful, CXMT’s $42 billion IPO would be one of China’s largest in recent years and a key step toward reducing the country’s reliance on foreign memory suppliers. As global chipmakers race to meet AI-driven demand, CXMT’s expansion underscores Beijing’s determination to secure its place in the next generation of advanced computing technologies.








