'China's Top DRAM Maker' CXMT to Raise KRW 6.5 Trillion Through IPO... Steps Up Pursuit of Samsung and SK Hynix

Investment in Expanding Production Lines and Next-Generation DRAM Development
Global Market Share Rises to 7.6% in Q1, Ranking Fourth Worldwide

CXMT (Changxin Memory Technologies), China's largest DRAM manufacturer currently pursuing an initial public offering (IPO), is set to expand its production capacity and invest in next-generation DRAM technology development through large-scale capital raising.

According to industry sources on July 11, CXMT submitted its prospectus to the Shanghai Stock Exchange on July 9 and has begun IPO procedures. Based on production capacity, CXMT is the largest DRAM manufacturer in China and the fourth largest globally, naming Samsung Electronics, SK hynix, and the U.S.-based Micron as its main competitors.

CXMT logo. Yonhap News Agency

CXMT stated, "There is still a significant gap between us and the top three global companies," adding, "There are differences in production capacity, R&D, and sales scale." The company has presented a strategy to enhance its competitiveness by expanding production capacity, investing in R&D, and securing next-generation memory technology.

Through this IPO, CXMT aims to raise 29.5 billion yuan (approximately KRW 6.5 trillion). Of this, 7.5 billion yuan will be allocated to upgrading production line technology, 13 billion yuan to advancing DRAM technology, and 9 billion yuan to the research and development of next-generation DRAM technologies.

The company's growth strategy is focused on mainstream DRAM products such as DDR5 and LPDDR5X, rather than high bandwidth memory (HBM). As Samsung Electronics, SK hynix, and Micron maintain a technological edge in HBM, CXMT is aiming to increase market share by leveraging its relative competitiveness in mainstream products.

Last year, 66.4% of CXMT's revenue came from LPDDR products, while DDR products accounted for 31.9%, indicating that the majority of its sales stem from mainstream DRAM. According to market research firm Omdia, CXMT's global DRAM market share rose from 4.7% in the fourth quarter of last year to 7.6% in the first quarter of this year. During the same period, Samsung Electronics held 38.6%, SK hynix 28.8%, and Micron 22.4%.

Analysts attribute CXMT's increased market share to its ability to fill the supply gap left by the top three global firms, as DRAM shortages persist due to expanded investment in AI servers. Recently, there have also been reports that Apple is considering adopting CXMT DRAM in some of its products.

Industry observers believe that, with this IPO, CXMT will further accelerate its pursuit of Samsung Electronics, SK hynix, and Micron by leveraging not only government support but also private investment.

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