CXMT has unveiled a 34.9B yuan (about $5.2B) spending plan covering DRAM research and back-end testing, two months after its listing on Shanghai’s STAR Market.
Funding leans on the over-allotment portion of the float. Of 18B yuan drawn from that pool, 13B yuan goes to a 24.1B yuan research program and 5B yuan is injected as capital into a wholly owned testing subsidiary in Hefei. Reports suggest the company intends to favor domestic equipment suppliers as it builds out.
The July 27 IPO raised 66.6B yuan (about $9.9B) on a net basis, roughly 36.8B yuan more than the original plan and the largest fundraising in the market’s history. The company could afford it. First-half revenue reached 150.3B yuan (about $22.4B), up 873 percent year on year, with net profit attributable to shareholders of 77.6B yuan (about $11.6B). As recently as 2023 CXMT lost 19.2B yuan.
The swing is a DRAM supercycle. Prices for server DDR5 have climbed above $54 a unit while the three incumbent makers have shifted capacity toward HBM, squeezing standard output.
CXMT’s mainstream G4 platform runs at 16 to 17 nanometres using DUV multi-patterning with DDR5 yields above 90 percent, and its G5 node at roughly 15 nanometres entered mass production on September 20. Samsung and SK hynix are already at 11 to 12 nanometres. The new money is aimed at closing that gap.
