"With 6.6 Trillion Won in Funds Secured"...'Chinese Samsung and SK Hynix' Listing Imminent, Will Chinese Semiconductors Benefit? [Weekend Money]

"CXMT IPO to Raise 29.5 Billion Yuan
Equipment Investment to Surpass SMIC"

The listing of Chinese semiconductor company CXMT (ChangXin Memory Technologies) is imminent. The level of market interest is high, with the public offering amount reaching 29.5 billion yuan (approximately 6.6342 trillion won). According to the securities industry, CXMT's listing is expected to accelerate the cycle for Chinese semiconductor equipment.

On June 12, China's Securities Regulatory Commission approved CXMT's registration on the STAR Market, which is often referred to as the "Chinese Nasdaq." The public offering amount for CXMT's IPO is 29.5 billion yuan, making it the largest since SMIC A-shares, the leading Chinese foundry company.

Yujin Park, a researcher at Hanwha Investment & Securities, stated, "If we simply apply the project's cost structure, 17.23 billion yuan, or 58.4% of the net IPO proceeds, has been allocated for equipment investment. CXMT's equipment investment scale is higher than that of SMIC. We expect the semiconductor equipment momentum to strengthen in 2026 and 2027 through orders and deliveries for etching, thin film deposition, and cleaning process equipment."

In the past, semiconductor equipment stocks also showed strength before and after SMIC A-share's listing. SMIC raised 53.23 billion yuan (about 11.9762 trillion won) through its STAR Market IPO, allocating 8 billion yuan to its 12-inch SN1 project in accordance with its initial fundraising plan. Researcher Park explained, "The total investment for the SN1 project was 9.06 billion dollars, with 80.9% allocated to equipment investment. If this is simply applied to the SN1 project allocation, the estimated equipment purchase scale would be 6.47 billion yuan. Before SMIC's listing, front-end equipment stocks first showed strength, and after the listing, interest spread to back-end equipment stocks."

However, Park added that large-cap IPO events like CXMT's can act as a short-term burden on the index. On the day of SMIC's listing, trading in a single stock accounted for 49.2% of total STAR Market turnover, and major stock indices experienced corrections of 3% to 7%. Park stated, "With the improvement in the memory market, it is necessary to consider the potential for short-term demand concentration following CXMT's listing. As the equipment investment portion of CXMT's fundraising is larger than that of SMIC, the case for semiconductor equipment stocks benefiting is even stronger."

Accordingly, Park expressed a preference for front-end equipment companies specializing in etching, thin film deposition, and cleaning processes, such as Northern Huachuang, Piotech, AMEC, and ACM Research.

This content was produced with the assistance of AI translation services.