As Samsung Falters, Chinese DRAM Surges: CXMT Returns to Profit in Just One Year

Chinese Government-Backed DRAM Company
Chasing the Big Three: Samsung, SK hynix, and Micron
"IPO Seen as a Test of China's Semiconductor Self-Sufficiency"

Chinese memory semiconductor company Changxin Memory Technologies (CXMT) has returned to profitability in the first quarter of this year, driven by the artificial intelligence (AI)-induced memory supercycle. The company is also seen as being one step closer to an initial public offering (IPO).

Logo of Chinese memory semiconductor company Changxin Memory Technologies (CXMT). Photo by Reuters and Yonhap News Agency

According to Chinese financial media outlet Caixin on the 18th, CXMT revealed in an updated investment prospectus that its revenue for the first quarter of this year reached 50.8 billion yuan, marking a 719% increase compared to the same period last year. During the same period, net profit was 33 billion yuan, shifting from a deficit of 2.8 billion yuan a year earlier. Net profit attributable to controlling shareholders was 25 billion yuan.

Looking at a longer period, revenue for the first half of this year is expected to reach up to 120 billion yuan, with net profit projected to be as high as 75 billion yuan. Of this, net profit attributable to controlling shareholders is anticipated to reach up to 57 billion yuan.

The surge in memory demand, resulting from increased investment in AI data centers, is cited as the driving force behind the improved performance. According to TrendForce, DRAM contract prices in the fourth quarter of last year jumped by over 75% year-on-year, and in the first quarter of this year, they rose by up to 98%. Gartner projects that DRAM prices will soar by 125% annually this year, while NAND prices are expected to surge by 234%. The company stated, "Global DRAM demand has surpassed supply, and due to production adjustments by major companies, DRAM prices have soared since the second half of 2025."

CXMT, which is being fostered by the Chinese government, is currently the largest DRAM manufacturer in China. According to market research firm Omdia, the company held a 7.67% share of the global DRAM market in the fourth quarter of last year, ranking first in China and fourth globally. The combined market share of the three major players—Samsung Electronics, SK hynix, and Micron—exceeds 90%.

However, the technology gap remains significant. The media outlet reported that CXMT's latest DDR5 product has a maximum capacity of 24Gb, which is considered one generation behind the cutting-edge 32Gb products of global competitors such as Samsung Electronics, SK hynix, and Micron. U.S. semiconductor equipment export restrictions are also cited as factors limiting production capacity expansion.

Caixin noted that the market views CXMT's potential listing on the Shanghai STAR Market as a litmus test for the level of China's semiconductor self-sufficiency. The company plans to raise 29.5 billion yuan through this IPO to invest in next-generation DRAM technology and production line expansion.

On the same day, the South China Morning Post (SCMP) pointed out that "news of CXMT moving closer to a STAR Market listing in Shanghai also boosted investor sentiment," highlighting it as a reason for the recent strength in Chinese tech stocks.

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