CXMT considers second Beijing memory chip plant after record $8.6 billion IPO

Chinese memory chipmaker CXMT is considering building a second production facility in Beijing as the company accelerates its expansion following a record $8.6 billion initial public offering, according to Reuters. 

The proposed 12 inch plant would be located in Yizhuang, around 20 kilometers southeast of central Beijing, according to people familiar with the plans. CXMT already operates a facility producing dynamic random access memory chips in the district.

The company is in early stage financing discussions with the Beijing Economic Technological Development Area, a technology manufacturing hub supported by the municipal government.

CXMT is seeking at least 60 million yuan, equivalent to approximately $8.9 million, in support from the development zone’s governing body. Other state owned technology companies have also expressed interest in participating in the financing, according to the report.

The eventual size and structure of the funding package could change. It remains unclear whether financing would come directly from the development area’s administrative authority or through its investment vehicles.

The planned production capacity and total investment have not been determined. Building a facility capable of manufacturing advanced DRAM chips generally requires an investment exceeding $10 billion.

The discussions come as CXMT expands production to capitalize on strong demand for memory chips from artificial intelligence infrastructure, data centers and consumer electronics.

CXMT is already developing additional plants in Shanghai and Hefei. Once fully operational, those projects could more than double the company’s production capacity to more than 600,000 wafers per month.

The company currently operates two 12 inch DRAM facilities in Hefei and one in Beijing. Each plant has a monthly capacity of approximately 100,000 wafers, according to people familiar with its operations.

CXMT raised 57.92 billion yuan, or approximately $8.6 billion, through its Shanghai listing on July 27. The offering was the largest mainland Chinese semiconductor IPO on record, surpassing SMIC’s Shanghai share sale in 2020.

The fresh capital gives CXMT additional resources to expand during a memory chip market upswing fueled by artificial intelligence spending. Its shares have gained about 13% since the listing, according to Reuters.

CXMT has become a central part of China’s effort to reduce its dependence on foreign semiconductor suppliers and narrow the technology gap with the United States.

The company ranked as the world’s fourth largest DRAM supplier during the first quarter of 2026. Its market share reached 8%, more than doubling from 3% a year earlier, while its DRAM revenue increased more than 700%.

However, CXMT remains considerably smaller than Samsung Electronics, SK Hynix and Micron. Together, the three companies controlled close to 90% of the global DRAM market during the first quarter.

CXMT’s growth has been supported by a government financing strategy known as the Hefei model, through which the capital of Anhui province invested public funds in strategically important technology companies.

Beijing and Shanghai are now seeking a larger share of the economic and strategic benefits associated with CXMT’s expansion. The competition highlights the increasingly important role local governments are playing in China’s effort to build a self sufficient semiconductor industry.