[Beijing = E-Daily Lee Myeongcheol Correspondent] Following Changxin Memory Technology (CXMT; hereinafter “Changxin Memory”), a D-Lab company that became a blue-chip stock after its listing on the Chinese stock market, China’s largest NAND flash memory company is now moving forward with an initial public offering (IPO). With the fundraising amount expected to reach around 6 trillion won, this is poised to become yet another example of China’s self-reliance in cutting-edge technology.

According to local media outlets, including China’s state-run Global Times (GT), on the 24th, Yangtze Memory Technology (YMTC; hereinafter “Yangtze Memory”) recently filed for an IPO with the Shanghai Stock Exchange.

The market where Yangtze Memory will list is the STAR Market (a market dedicated to technology stocks), often referred to as the “Chinese Nasdaq.” This is also where major tech companies such as Changxin Memory and Unitech have recently listed.

The company aims to raise 33 billion yuan through this IPO. If the listing is successful, it will be the third-largest IPO in the history of the STAR Market, following those of Changxin Memory and CITIC Guojie.

Following the listing, Yangtze Memory plans to issue 1.98 billion to 2.43 billion shares, representing 10–12% of its total shares. According to the prospectus, this implies a post-listing market capitalization of up to 330 billion yuan (approximately 67.7 trillion won).

If the stock price surges after the listing, the possibility of its market capitalization ballooning to the hundreds of trillions of won cannot be ruled out. Changxin Memory also saw its market capitalization swell to 3.66 trillion yuan (approximately 751 trillion won) on its listing date last month, the 27th, after its stock price rose 472% from the initial public offering price.

Yangtze Memory is one of China’s two major memory semiconductor companies, alongside Changxin Memory. Changxin Memory ranks among the top four globally in the DRAM sector and is China’s largest DRAM manufacturer. According to a Bloomberg report citing market research firm Counterpoint Research, Yangtze Memory held a 14% share of global NAND shipments in the second quarter of this year, ranking third behind SamsungElectronics(005930)and SK hynix(000660). This marks the first time the company has jumped to third place, surpassing competitors Micron and Kioxia.

As recently as 2023, when the global memory market was in a slump, Yangtze Memory’s revenue stood at just 18.7 billion yuan (approximately 3.8 trillion won), and its net loss reached 19.2 billion yuan (approximately 3.9 trillion won). However, this year, revenue reached 47 billion yuan (approximately 9.6 trillion won) in the first quarter alone, and net income attributable to shareholders amounted to 33.4 billion yuan (approximately 6.9 trillion won)—more than double last year’s annual net income.

Yangtze Memory can produce its products without relying on extreme ultraviolet (EUV) lithography equipment thanks to its proprietary stacking technology, known as “Xtacking.” As a result, it is regarded as a leading example of technological self-reliance in the semiconductor sector, having circumvented Western technology sanctions.

According to the company’s prospectus, it plans to allocate 20.8 billion yuan (approximately 4.3 trillion won) of the funds raised through the IPO to production line upgrades and 12.2 billion yuan (approximately 2.5 trillion won) to research and development (R&D) for next-generation NAND flash and high-speed storage products.

Professor Ma Zhihua, a veteran Chinese semiconductor industry analyst, told GT, “As demand for NAND memory drives by artificial intelligence (AI) grows stronger, major memory manufacturers are competing to secure market share,” adding, “The funds raised this time will help Yangtze Memory expand its production capacity and accelerate the development of next-generation products.”

Yangtze Memory is already expanding its production capacity. Its third production plant (fab) in Wuhan, Hubei Province, central China, is expected to begin operations by the end of the year, and the company plans to build two additional wafer fabs. GT estimates that once all plants are fully operational, Yangtze Memory’s total production capacity will double compared to current levels.

Meanwhile, the Chinese stock market has recently seen companies such as Changxin Memory and robotics firm Unitree go public and raise substantial funds. By attracting new capital through the capital markets, these companies are preparing to fully commit to R&D and expanding production capacity.

Yang Delong, chief economist at the Chinese financial institution First Sifront, stated, “AI-related stocks—including semiconductors, computing power, algorithms, and robotics—continue to lead the upward trend,” adding, “These IPOs will help more innovative technology companies secure the necessary funding and will also have a very positive impact on the development of China’s new productive forces.”