Chinese Experts Express Optimism Over CXMT IPO, Expecting Challenges to Samsung and SK Hynix to Reshape Market

As China's ChangXin Memory Technologies (CXMT) secures massive capital through its initial public offering (IPO), expectations are rising in China for a reshuffling of the DRAM semiconductor market currently dominated by Samsung Electronics, SK Hynix, and Micron.

According to the Chinese state-run media outlet Global Times on July 27, Chinese experts view CXMT's listing as a historic transition for China's memory industry from "technological catching-up" to large-scale capacity expansion.

Industry analyst Ma Jihua stated that the rise of CXMT enables Chinese DRAM makers to compete with global leading players.

Through the IPO, CXMT has secured 57.92 billion yuan (approximately 12.5 trillion won), and the fundraising scale could increase to 66.61 billion yuan (approximately 14.4 trillion won) if the over-allotment option is exercised.

Analyst Ma noted that CXMT plans to use the funds to upgrade 12-inch DRAM wafer production lines and invest in research and development (R&D) for high-bandwidth memory (HBM), which is expected to accelerate technological upgrades and capacity expansion.

Furthermore, he projected that CXMT could challenge the global DRAM "top three," including Samsung Electronics, and potentially reshape the global market.

According to market research firm Counterpoint Research, the global DRAM market share by revenue in the first quarter of this year was led by Samsung Electronics (38%), SK Hynix (29%), and Micron (22%), while CXMT's market share climbed to 8%.

In the first quarter of last year, CXMT's market share was only around 3%.

Chen Jing, vice president of the Institute for Technological Strategy, interpreted CXMT's rise as signifying that China has, for the first time, a globally competitive memory manufacturer equipped with strong capital, production capacity, and technology.

He also mentioned that CXMT's listing has boosted confidence in China's "hard tech" sector, which involves core technologies requiring long-term R&D and overcoming technical hurdles.

He explained that CXMT has endured about a decade of massive investment, losses, and external sanctions from the United States and other countries, and has now grown to the point where annual profits exceeding 100 billion yuan (approximately 21.6 trillion won) are expected.

He added that CXMT is a "market reshaper" rather than a "market disruptor," noting that while CXMT's capacity expansion could slow the upward trend of DRAM prices, it is unlikely to trigger price wars among companies or overturn the current price-rise cycle.

The economic media outlet Yicai predicted that CXMT's IPO will accelerate the localization of China's memory industry supply chain.

While noting that a gap still remains between CXMT and the global top three, Yicai expressed expectations that the listing will drive growth not only for CXMT but also for key companies within the industrial chain, stating that "the overall competitiveness of China's integrated circuit industrial chain will be further enhanced."

An industry insider noted that China's memory industry has long faced issues such as insufficient production capacity and pressure to catch up in core technologies, adding that "CXMT's listing will help strengthen R&D and innovation capabilities, build production capacity, and accelerate upgrades."

Chinese securities industry insiders also suggested that a process of "separating the wheat from the chaff" based on financial performance will likely take place within China's tech stock sector going forward.

CXMT was listed on the Shanghai Stock Exchange on this day, instantly soaring to become the top company by mainland market capitalization.
※ Please note: This article was translated by AI and may contain errors.