Chinese Chipmaker Shares Soar Nearly 470% in Blockbuster Market Debut
Shares in China’s biggest memory chip maker have soared by nearly 470% after making a blockbuster debut on the Shanghai Stock Exchange’s technology-focused Star Market.
The rally lifted ChangXin Memory Technologies’ (CXMT) market value to around 3.3 trillion yuan ($487bn; £365bn), making it the most valuable listed company in mainland China.
The spectacular debut comes despite a sharp sell-off in technology stocks globally this month.
Founded in 2016 by chairman Zhu Yiming and headquartered in Hefei, Anhui Province, CXMT manufactures dynamic random-access memory (DRAM) chips used in AI data centres, smartphones, personal computers, tablets and a wide range of other electronic devices.
The company has said it will use most of the proceeds from its initial public offering (IPO) to expand memory chip production and invest in research and development.
The IPO’s stellar performance is likely to provide a welcome boost for Chinese policymakers, who have introduced measures to stabilise the country’s stock market after more than $1.5tn was wiped off share values in recent weeks.
Analysts said the extraordinary first-day surge was driven not only by strong investor enthusiasm but also by a limited supply of shares.
“The reason for the extraordinary bounce this morning is that only 7% of the shares are available for trading,” Anna Macdonald, investment strategy director at Hargreaves Lansdown, told the BBC’s Today programme.
The listing also underlines investors’ strong appetite for a homegrown semiconductor champion as Beijing presses ahead with efforts to make China’s technology sector more self-reliant.
The global DRAM market remains dominated by South Korea’s Samsung Electronics and SK Hynix, along with US-based Micron, which together account for around 90% of worldwide production.
Earlier this month, SK Hynix raised $26.5bn (£19.8bn) in its New York share offering, the largest-ever US listing by a foreign company.
A key supplier to AI chip giant Nvidia, the company sold 177.9 million American depositary shares at $149 each. The stock jumped by as much as 17% on its Nasdaq debut before giving back some of those gains in subsequent trading.
SK Hynix’s market capitalisation surpassed $1tn in South Korea in May, fuelled by booming demand for AI-related memory chips.
Once regarded as relatively inexpensive components, memory chips have more than doubled in price in recent months, with costs continuing to rise.
Several major technology companies have already increased prices for products such as tablets and video game consoles to offset higher component costs.
Ellie Wong, an analyst at research firm TrendForce, told Reuters that those price increases are expected to continue through to the end of 2027.
“Amid persistent supply shortages, many customers are seeking to diversify their memory supplier base, which should significantly benefit CXMT and create more business opportunities,” she said.
CXMT History:
Founded in 2016, ChangXin Memory Technologies (CXMT) is a leading Chinese semiconductor company specialising in the design, manufacture, research and development of dynamic random-access memory (DRAM) chips. Its products power a wide range of devices and applications, including smartphones, personal computers, tablets and servers.
Backed by strong research and development capabilities, CXMT has introduced several generations of DRAM products and continues to expand its technology portfolio to meet growing demand for advanced memory solutions.
The company aims to become a leading technology-driven memory chip manufacturer in the AI era by delivering reliable, high-performance products and services. Through continued innovation, CXMT seeks to support the development of intelligent technologies and contribute to improving everyday life.
