Shares of CXMT, China’s leading memory chipmaker, soared as they started trading in Shanghai. This marked one of the largest initial public offerings (IPOs) in recent years within mainland China. On its first day, CXMT’s shares climbed by 466%, establishing the company as the most valuable on Chinese exchanges with a market valuation of around 3.3 trillion yuan, or over $487 billion.
Despite its impressive valuation, CXMT trails behind global powerhouses like South Korea’s Samsung Electronics, SK Hynix, and the U.S.’s Micron Technology. The company raised approximately $8.6 billion in its IPO on the Shanghai Stock Exchange’s STAR market, priced at 8.66 yuan per share. This event marked the second-largest IPO for mainland China, following the Agricultural Bank of China’s $22.1 billion offering in 2010.
Founded in 2016 in Hefei, CXMT specializes in DRAM (dynamic random access memory) chips, which are integral to various technologies including AI servers, automobiles, consumer electronics, smartphones, and PCs. The surge in artificial intelligence has boosted CXMT’s success significantly, as China seeks self-sufficiency in advanced technologies. This comes amid limited access to key chipmaking equipment due to restrictions led by the U.S.
CXMT plays a critical role in China’s AI push, particularly in the face of U.S. export controls,said Kyle Chan from the Brookings Institution.
U.S. export controls have also affected China’s import of advanced HBM (high-bandwidth memory) chips, a top-tier category of DRAM. CXMT’s revenue reached 50.8 billion yuan ($7.5 billion) in the first quarter of 2026, a 700% year-on-year increase, propelled by the AI boom causing a global memory chip shortage. This has increased costs for some computers and smartphones.
Chan noted the potential for CXMT to mitigate the chip shortage, while pointing out challenges like manufacturing capacity constraints due to restricted access to top chipmaking tools. CXMT depends on domestic equipment manufacturers to overcome these hurdles.
In 2025, CXMT held the position of the world’s fourth-largest DRAM maker by shipments, capturing 8% of the global market according to Counterpoint Research. It followed Samsung Electronics with 36%, SK Hynix holding 29%, and Micron with 24%. In early 2026, CXMT’s share grew to 9%, with projections suggesting it could reach 11% by 2028. However, long-term competitiveness might require achieving at least 15% market share.
Trade restrictions remain a major obstacle for CXMT. This includes calls by some U.S. lawmakers to prevent American firms from purchasing CXMT memory chips due to security concerns. These concerns link CXMT to Chinese military interests, a claim Beijing refutes.
This precedent-setting IPO follows a $26.5 billion share offering by South Korea’s SK Hynix on Nasdaq earlier in the month.
Additional reporting by AP journalist Didi Tang in Washington.