China's CXMT Surges to Become Mainland's Most Valuable Listed Company After Record IPO

China’s largest memory-chip maker, ChangXin Memory Technologies (CXMT), has become the mainland’s most valuable listed company after its shares jumped more than five fold on their market debut. The company raised 57.9 billion yuan ($8.6 billion) in Asia’s biggest IPO of the year on Monday. Its shares surged 466% in Shanghai trading, leaving it with a market capitalization of around 3.3 trillion yuan.

Founded in 2016, CXMT has emerged as China’s leading producer of dynamic random-access memory (DRAM) chips, used in smartphones, personal computers, servers, AI systems, and military equipment. The company now accounts for roughly 8% of the global DRAM market, making it the world’s fourth-largest manufacturer behind Samsung Electronics, SK Hynix, and Micron.

The US has been trying for years to hold back China’s semiconductor industry. Since 2022, Washington has imposed sweeping export controls on advanced chipmaking equipment and technology, expanding them further in late 2024 to target China’s ability to manufacture cutting-edge semiconductors. The restrictions were intended to limit China’s access to the tools needed to produce the most advanced chips used in AI and military applications. That has left CXMT’s products about one generation behind industry leaders, the South China Morning Post reported.

Even so, the company has continued to expand production amid soaring AI-driven demand for memory chips. According to the company’s IPO prospectus cited by China Daily, CXMT plans to use the IPO proceeds to increase manufacturing capacity, upgrade its DRAM technology, and fund research and development.

Semiconductors have become a main front in the race between the US and China for technological leadership. While US officials say export controls are needed to preserve America’s lead in advanced chips, China has accelerated investment in domestic chip design, manufacturing and research.

The IPO follows a series of advances by China’s technology sector. Last month, a Chinese-built supercomputer reclaimed the top spot in the global TOP500 rankings, while domestic companies have continued to improve AI processors, semiconductor manufacturing equipment, and other high-performance computing technologies despite US restrictions. Beijing is seeking to play a larger role in shaping the global technology landscape. Earlier this month, China and Russia joined 27 other countries in establishing the World Artificial Intelligence Cooperation Organization (WAICO), a Shanghai-based body designed to promote global AI governance to make the technology safe, fair, and beneficial to all of humanity.