CXMT's $8.6 bn Shanghai IPO Sets Record for Chinese Semiconductor Sector

ChangXin Memory Technologies (CXMT), the world’s fourth‑largest DRAM manufacturer with about 7.7% of global market share, has filed for an initial public offering on the Shanghai STAR Market. The company set the IPO price at 8.66 yuan per share, targeting raise of 57.9 billion yuan (≈ $8.55 bn). If the over‑allotment option is fully exercised, proceeds could rise to about 66.6 billion yuan, making it the largest semiconductor IPO in China’s history and Asia’s biggest listing so far in 2026. CXMT plans to use the funds to upgrade production lines, develop advanced DRAM technology and expand capacity. Analysts note the firm aims to produce roughly 350,000 DRAM wafers per month by the end of 2026 – a volume close to that of Micron – and to shorten fab‑construction cycles to about 12 months. The company’s 2025 revenue hit 55 billion yuan, and it turned a profit of 33 billion yuan in the first quarter of 2026 after a loss the previous year. Investors are betting on a steep valuation jump. Reuters quoted fund manager Wu Zhou: “CXMT’s valuation will likely top 3 trillion yuan ($443 bn) after listing … and could even hit 5 trillion yuan.” Market commentary also highlights strategic investors such as Nio, which contributed 158 million yuan to the IPO and will co‑develop automotive‑grade LPDDR chips. The offering has attracted intense subscription demand – retail orders exceeded the offer by more than 200 times – and generated at least $41 million in fees for six Chinese underwriting banks. The news has reverberated through the broader memory‑chip sector, prompting a sell‑off in related Chinese stocks and concerns about future global DRAM supply dynamics.