[Edaily Reporter Kwon Oh Seok ] As China’s memory semiconductor company “Changxin Memory Technology” (CXMT; hereinafter “Changxin Memory”) shot straight to the top spot in China’s market capitalization rankings immediately after its IPO, domestic investor sentiment has rapidly frozen amid growing concerns that the global DRAM landscape could shift. SamsungElectronics(005930)In addition to concerns that the DRAM oligopoly held by SamsungElectronics ( SK hynix(000660)) could collapse, news that China has begun mass-producing deep ultraviolet (DUV) lithography equipment has further unsettled the market, fueling fears that China could catch up technologically. However, the securities industry assesses that while this may weigh on investor sentiment toward semiconductor stocks in the short term, SamsungElectronics and SK hynix will maintain their dominance in the medium to long term.

According to MP Doctor and others on the 28th, Changxin Memory made its debut on the STAR Market—China’s version of the Nasdaq—the previous day (the 27th) and closed at 49.0 yuan (approximately 10,637 Hanwha KRW), up 465.82% from its opening price. Its market capitalization at the time was recorded at 3.28 trillion yuan (approximately 712 trillion Hanwha KRW).
Local Chinese media also reported that Changxin Memory surpassed Intel’s market capitalization (approximately 684 trillion won) following its listing. On the same day, the market capitalizations of SamsungElectronics(005930)and SK hynix(000660)stood at approximately 1,485 trillion won and 1,294 trillion won, respectively; Changxin Memory had risen to about half that level on its very first day of trading. However, as of 2:11 p.m. that day, the stock was trading at 47.90 yuan, down 2.25% from the previous trading day, showing signs of a pullback—possibly due to fatigue following the previous day’s sharp rally.
Changxin Memory is the world’s fourth-largest DRAM manufacturer, trailing South Korea’s SamsungElectronics and SK hynix, as well as the U.S.-based Micron. The company expects to achieve revenue and net profit of up to 120 billion yuan (approximately 26 trillion won) and 75 billion yuan (approximately 16.3 trillion won), respectively, in the first half of this year. In particular, the market believes that Changxin Memory could threaten the “Big Three” by using the funds raised from this IPO to enhance its technological capabilities.
Additionally, news that China has begun mass-producing DUV lithography equipment served as a negative factor. Earlier, Bloomberg reported that a state-owned enterprise headquartered in Shanghai had started producing immersion DUV lithography equipment. However, the name of the company was not disclosed due to the sensitivity of the matter.
DUV is lithography equipment that uses light to etch extremely small circuits onto wafers. Although its technological level is lower than that of extreme ultraviolet (EUV) equipment—which enables the creation of smaller circuits and reduces the number of process steps—it is widely used. Since lithography equipment has long been identified as the biggest bottleneck in China’s semiconductor industry, concerns are mounting that if China secures this technology, its capacity to expand production could increase, intensifying global competition in the memory market.
Nevertheless, the securities industry is drawing a line against premature pessimism. Kim Dong-won, Head of Research at KB Securities, stated, “Driven by the Chinese government’s push for AI, the increase in domestic memory demand in China is expected to outpace the increase in supply; therefore, we believe the likelihood of a memory supply glut affecting markets outside China is limited.”
He added, “SamsungElectronics and SK hynix are seeing a sharp increase in the proportion of AI server memory, driven primarily by long-term supply agreements (LTAs) with U.S. Big Tech companies, so there is unlikely to be any overlap between Changxin Memory’s customer base and that of these major clients.”
Regarding DUV, Han Ji-young, an analyst at KIWOOM Securities, noted, “The manufacturer’s name and performance specifications have not been disclosed in detail. Given that the initial volume is reported to be just five units, rising to only 20 units by 2027, ASML’s production capacity—which has set a target of 130 units this year—still holds the advantage,” he explained, adding, “As investor sentiment has weakened following the sharp correction in semiconductor stocks since July, the market is reacting sensitively even to news about China’s DUV equipment production.”