Inside CXMT’s US$4.3b IPO: soaring profits meet US export threat and high-stakes HBM race

CXMT is taking orders for its advanced DDR5 server memory from Tencent and ByteDance after completing customer validation, a source says As China’s leading DRAM maker ChangXin Memory Technologies (CXMT) prepares for its expected 29.5 billion yuan (US$4.3 billion) Shanghai Star Market listing, the critical question facing investors is whether the firm can convert its cyclical windfall into permanent industry leadership. The Hefei-based chipmaker enters the market at a uniquely lucrative moment: a global memory shortage driven by surging artificial intelligence computing demand has triggered a massive upcycle in pricing, delivering windfall earnings. In the first quarter, CXMT’s revenue jumped 719 per cent year on year, swinging from a loss of 2.83 billion yuan a year earlier to a net profit of 33 billion yuan. Its average selling prices are now within 5 to 10 per cent of global leaders Samsung Electronics, SK Hynix and Micron Technology, according to estimates by research firm SemiAnalysis.

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