HONG KONG – Shares of CXMT, China’s largest memory chipmaker, soared on Monday after they began trading in Shanghai, marking mainland China’s largest initial public offering (IPO) in recent years.
CXMT’s shares surged by an astonishing 472% and continued to rise, trading up 462% by early afternoon. This rapid increase has made it the most valuable company listed on a mainland Chinese exchange, boasting a market capitalization of approximately 3.3 trillion yuan (over $487 billion). However, it is important to note that this valuation still trails behind major South Korean and American memory chipmakers, such as Samsung Electronics, SK Hynix, and Micron Technology.
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CXMT is among numerous chipmakers that have experienced significant growth due to the surge in artificial intelligence (AI) applications. The company’s success is closely tied to China’s ambition for greater self-sufficiency in advanced technologies, particularly as it grapples with limited access to cutting-edge chipmaking machinery due to restrictions imposed by the United States.
Through its IPO, CXMT raised a remarkable $8.6 billion, with shares priced at 8.66 yuan ($1.3) each on the Shanghai Stock Exchange’s STAR market, which is akin to Nasdaq in the U.S.
This offering is the second largest IPO in mainland China, following the Agricultural Bank of China’s $22.1 billion share offering in Shanghai and Hong Kong back in 2010.
Founded in 2016 in Hefei, CXMT has quickly become one of the world’s leading manufacturers of DRAM (dynamic random access memory) chips, which are essential components in a wide array of devices, from AI servers to automobiles and consumer electronics like smartphones and personal computers.
“CXMT plays a critical role in China’s AI push, particularly in the face of U.S. export controls,” remarked Kyle Chan, a fellow at the Brookings Institution and a recognized expert in China’s technology policies. The U.S. restrictions have significantly limited China’s ability to import advanced HBM (high-bandwidth memory) chips, a crucial type of DRAM.
In the first quarter of 2026, CXMT reported a revenue spike to 50.8 billion yuan ($7.5 billion), reflecting a remarkable year-on-year increase of over 700%, fueled by soaring demand driven by AI advancements.
The escalating use of AI has resulted in a global memory chip shortage, which has in turn driven up prices for various computing devices, including computers and smartphones. A significant question remains: can CXMT help alleviate this broader shortage?
Experts suggest that CXMT is China’s best chance at developing its own advanced HBM chips to support domestic AI models. However, the company faces significant challenges, including supply chain bottlenecks that hinder its ability to scale manufacturing capacity. Access to the world’s best chipmaking tools remains heavily restricted, forcing CXMT to rely on domestic equipment manufacturers.
According to Counterpoint Research, a technology research firm, CXMT ranked as the world’s fourth largest DRAM memory chipmaker by shipments in 2025, capturing roughly 8% of the global market. In comparison, Samsung Electronics held a 36% share, SK Hynix accounted for 29%, and Micron had about 24%.
In the first quarter of this year, CXMT managed to account for approximately 9% of global shipments. By 2028, Counterpoint Research predicts its market share could reach around 11%. However, the research firm also indicates that CXMT will likely need to achieve at least a 15% global market share to remain competitive in the long run.
“Trade restrictions on tools are the key challenge for CXMT,” stated MS Hwang, a research director at Counterpoint specializing in memory semiconductors. Furthermore, some U.S. lawmakers have recently suggested that the Biden administration should prevent American companies from purchasing CXMT’s memory chips due to national and economic security concerns.
CXMT, like many other Chinese firms, has been designated by the Pentagon as having ties to the Chinese military, a claim Beijing has largely dismissed.
CXMT’s IPO follows a significant $26.5 billion offering by South Korea’s SK Hynix on the Nasdaq earlier this month.
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AP journalist Didi Tang in Washington contributed to this report.
