[E-Daily Reporter Choi Oh-hyun ] China’s largest DRAM manufacturer, Changxin Memory Technology (CXMT), saw its revenue increase nearly tenfold in the first half of this year, riding the wave of the memory supercycle. With funds raised through its initial public offering (IPO) combined with cash generated during the boom, the company is expected to accelerate its expansion of production capacity and the development of cutting-edge DRAM.

According to industry sources on the 30th, CXMT’s revenue for the first half of this year reached 150.31 billion yuan (approximately 30.8 trillion won), a surge of 873.6% compared to the same period last year. Net income stood at 77.605 billion yuan (approximately 15.9 trillion won), marking a return to profitability from a loss of 2.332 billion yuan in the first half of last year. Cash flow from operating activities reached 131.2 billion yuan (approximately 26.89 trillion won), more than a 30-fold increase compared to the same period last year. CXMT stated, “Due to rising global computing demand and production capacity allocation by major manufacturers, a DRAM supply shortage and sharp price hikes occurred, leading to a significant increase in gross profit for our main products.”

The benefits of the memory boom are not only being reaped by South Korea’s SamsungElectronics and SK hynix but are also bolstering the ability of Chinese latecomers to catch up. Through its listing on the Shanghai Stock Exchange last month, CXMT raised approximately 14 trillion won, including an over-allotment option, and plans to invest these funds in the advancement of DRAM technology and production facilities, as well as in research and development for next-generation technologies. According to its semi-annual report, CXMT is currently developing 4th- and 5th-generation process technology platforms and next-generation packaging technologies, with its 5th-generation process currently undergoing customer certification. The company has significantly increased its R&D workforce by approximately 60.9%, from 4,655 employees in the same period last year to 7,491.

The company is also aggressively expanding production capacity and advancing product technology. Reuters reported, “Once CXMT’s new factories in Shanghai and Hefei, currently under construction, become operational, total production capacity could rise to over 600,000 wafers per month—double the current level.” Reuters also reported that CXMT has successfully begun mass production of the latest-generation low-power DRAM, LPDDR6, which is scheduled to be installed in Xiaomi’s new flagship foldable phone. This marks the start of mass production for the next generation less than a year after the previous generation, LPDDR5, went into mass production. Notably, CXMT revealed that it has shipped samples of LPDDR6 to customers for testing not only in mobile devices but also in servers and smart cars, opening up the possibility of expanding its applications. This effectively marks CXMT’s full-scale entry into the latest DRAM market, where SamsungElectronics and SK hynix are competing. While domestic companies are scaling back production of older LPDDR models, CXMT is actually increasing its market share in this segment.

CXMT’s rise in the memory sector does not immediately pose a direct threat to Korea’s top two memory manufacturers. This is because capacity expansion alone does not necessarily imply technological maturity or increased shipment volumes. Furthermore, there remains a significant gap in technology and mass production capabilities regarding High Bandwidth Memory (HBM) and cutting-edge DRAM. However, the situation is different for general-purpose memory. If CXMT floods the market with its expanded production volume, it could exacerbate oversupply and price declines during a future downturn in the memory market. This is because if Chinese smartphone and PC manufacturers increasingly adopt domestically produced memory, there is a high likelihood that they will erode the market share of Korean companies in the Chinese market. Recently, in a report on the Chinese semiconductor industry, Goldman Sachs projected that CXMT would supply 50% of China’s DRAM demand by 2028.

An industry official stated, “While it will be difficult for CXMT to catch up with Korean companies in HBM or cutting-edge DRAM right away, in the case of standard DRAM, simply expanding production capacity could influence prices.” The official added, “If a structure is established where profits from standard products are reinvested into advanced processes, Korean companies will need to continuously widen the technology gap.”