China’s CXMT expects revenue to surge as memory chip demand soars

By Che Pan and Laurie Chen

BEIJING, May 18 (Reuters) – Changxin Memory Technologies (CXMT), China’s top memory chipmaker, said on Sunday it expects first-half revenue to reach 110 billion yuan to 120 billion yuan ($17.62 billion), according to a renewed prospectus, as surging memory chip prices boost its business outlook.

Memory chip prices have risen globally as an artificial intelligence-driven boom in computing chips fuels a memory supercycle. The rally helped push Samsung Electronics’ market capitalization above $1 trillion in May.

CXMT said global dynamic random-access memory (DRAM) demand exceeded supply as computing demand continued to grow and major chipmakers adjusted production. That has driven DRAM prices sharply higher since the second half of 2025. The company added that revenue rose quickly as it expanded output and sales and improved its product mix.

CXMT’s initial public offering is being closely watched by foreign investors and industry observers as a gauge of China’s progress in DRAM chips, which have become increasingly important in the AI era because they enable faster data transmission between processors and memory.

The Hefei-based company said net profit attributable to shareholders is expected to reach up to 57 billion yuan in the first half.

In the first quarter, CXMT’s revenue jumped more than 700% year on year to 50.8 billion yuan. It posted a net profit of 25 billion yuan, compared with a net loss of 1.6 billion yuan in the same period a year earlier.

($1 = 6.8092 Chinese yuan)

(Reporting by Che Pan and Laurie Chen; Editing by Rashmi Aich and Christian Schmollinger)