Chinese semiconductor firm CXMT has initiated its initial public offering (IPO) process on the mainland, according to a filing with the China Securities Regulatory Commission (CSRC).

This filing completes the required IPO counseling recordation for a listing in China.

Founded in 2016 in Hefei, CXMT could become the first dynamic random-access memory (DRAM) manufacturer to list on the A-share market if approved.

China International Capital Corp and China Securities are the designated IPO sponsors.

CXMT has not disclosed the IPO’s schedule or fundraising target, with its largest shareholder being Hefei Qinghui Jidian Enterprise Management Partnership.

CXMT competes in a global memory-chip market dominated by SK Hynix, Samsung, and Micron, who jointly held over 94% of the market in Q1 2025.

The firm seeks to grow in next-gen DRAM like DDR5, amid rising demand driven by AI and data centers.

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🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Breaking the memory chip oligopoly: China’s multi-year strategic effort

CXMT’s IPO represents a critical milestone in China’s long-term strategy to break into the global memory chip market dominated by just three players.

The global DRAM market has operated as a tight oligopoly for years, with Samsung Electronics (33.7%), SK Hynix (36%), and Micron (24.3%) controlling approximately 94% of the market as of Q1 20251.

CXMT has made significant progress, growing from virtually zero market share to 5% in just five years, with projections to reach 10% by 20252.

This growth is particularly significant given the technological challenges. CXMT has narrowed the technology gap with global leaders to approximately 1.5-5 years, developing DDR5 memory chips using 16nm node processes despite ongoing U.S. sanctions3.

The company’s rapid advancement reflects China’s broader semiconductor strategy to reduce foreign dependencies, with CXMT specifically targeting both legacy DRAM (holding 10% of DDR4 and 20% of LPDDR4 markets) while expanding into next-generation technologies2.

2️⃣ AI boom creates strategic timing for memory manufacturers

CXMT’s IPO comes at a pivotal moment when AI is reshaping demand in the global memory chip market.

The market for AI chips in data centers alone is projected to exceed $400 billion by 2030, growing at a compound annual rate of 14% from 20254.

Memory requirements for AI applications are particularly intense. Next-generation AI chips could consume significantly more power per module by 2035 compared to current server-class GPUs operating within a 300W to 600W range5.

This surge in demand creates an opportunity for new entrants like CXMT, especially as the company develops high-bandwidth memory (HBM) chips specifically designed for AI applications6.

McKinsey estimates global demand for data center capacity could grow at 19-22% annually through 2030, with advanced AI workloads expected to account for a large portion of total data center capacity—creating sustained demand for memory chips that exceeds current production capacity7.

3️⃣ A-share listings reflect China’s maturing semiconductor ecosystem

CXMT’s position as potentially the first memory chip maker to list on China’s A-share market highlights the evolution of China’s semiconductor financing landscape.

A-shares, stocks of mainland China-based companies traded on domestic exchanges and denominated in renminbi, were historically restricted to domestic investors but have gradually opened to foreign institutions since 2003 through the Qualified Foreign Institutional Investor system1.

The inclusion of China A large-cap stocks in the MSCI Emerging Markets Index beginning in 2018 has further increased their global visibility and importance1.

CXMT’s planned listing follows a pattern established by SMIC, China’s leading semiconductor foundry, which raised $1.8 billion in its 2004 IPO despite initial stock price challenges8.

The Chinese government has consistently supported semiconductor development through mechanisms like the China Integrated Circuit Industry Investment Fund (which holds a 9.8% stake in CXMT), reflecting how public-private partnerships have become central to China’s technology advancement strategy9.

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