- CXMT is preparing for a major IPO on China's STAR Market, set to be one of China's largest semiconductor IPOs.
- Founded in 2016 with support from Hefei's government, CXMT leveraged technology from Qimonda and talent from global firms to become China's leading DRAM maker.
- The company's revenue surged to ~$8.6B in 2025, turning a net profit of $1B, though it still trails Samsung, SK Hynix, and Micron in DRAM revenue.
- CXMT's growth is driven by high DRAM ASPs due to market shortages, with bit shipment share expected to rise from 9% in 2025 to 12% by 2027.
- The company faces challenges in HBM production, with limited capacity allocation and lower yields compared to commodity DRAM, which currently offers higher margins.
- CXMT's IPO structure shows significant minority interests, with state-venture capital holding over 30%, and proceeds focused on DRAM technology upgrades, not HBM expansion.
- Alibaba Cloud is a key customer and shareholder, ensuring domestic demand, while export controls and smuggling complicate HBM supply for China's AI market.