High-bandwidth memory (HBM) has become the latest competitive front for global DRAM manufacturers. As Samsung, SK Hynix, and Micron gear up for HBM4 mass production in 2026, China's CXMT has reportedly delivered 16nm HBM3 samples to Huawei and its partners, a prelude to large-scale manufacturing slated for the same year.
Analysts say that while CXMT remains three to four years behind top global players, its progress represents a significant stride toward bolstering China's semiconductor autonomy and disrupting the long-held dominance of international DRAM leaders.
CXMT advances HBM3 and DRAM production
Sources indicate that CXMT has started shipping HBM3 samples, though its yield rate and cost efficiency remain below top-tier standards. Even so, some reports claim its current yield trails Samsung's by only a narrow margin.
To expand wafer output, CXMT has reportedly transferred its base die technology to contract manufacturers, including Nexchip Semiconductor Corp., a venture backed by Hefei authorities and Powerchip (PSMC). This technology licensing and outsourcing model is expected to accelerate CXMT's DRAM production growth.
Following its 2024 announcement of DDR5 DRAM mass production, market focus shifted to CXMT's yield performance. Confronted with temperature and thermal challenges in early 2025, the company swiftly reworked its photomasks, achieving notable yield gains later that year.
Reports from China suggest DDR5 yields have surpassed 80%, now approaching the performance benchmarks of leading global manufacturers.
IPO acceleration and policy backing
In July 2025, CXMT initiated IPO guidance with Chinese regulators, formally launching its listing process. By early October 2025, the China Securities Regulatory Commission (CSRC) had updated its filing to the "counseling acceptance" stage, matching expectations for a potential IPO in the first quarter of 2026.
Poised to become China's first publicly listed memory chipmaker, CXMT plans to raise between CNY20 billion and CNY40 billion (US$2.80 billion–US$5.61 billion) as it looks to capitalize on the AI investment boom.
Though analysts remain cautious about CXMT's HBM3 progress amid its IPO timetable, tightening US restrictions on Chinese HBM chips have amplified the strategic weight of its technical breakthroughs.
Supported by China's state semiconductor investment fund, CXMT bears heavy policy expectations to prove its worth as the country's final safeguard in the global memory race.
Capacity expansion and market outlook
CXMT targets 2026 for the start of HBM3 mass production, with a new backend packaging facility in Shanghai slated to come online by year-end 2025. Development of HBM3E is scheduled for completion in 2027, keeping the company roughly three to four years behind peers like SK Hynix.
Market projections indicate CXMT's DRAM output capacity will grow steadily through 2025, rising from 230,000 to 280,000 wafers per month across its Hefei and Beijing fabs. Capacity could reach 290,000–300,000 wafers by 2026, pushing its global DRAM share toward 15% and driving revenue growth of more than 60%.
Public filings reveal CXMT reached a valuation of CNY150.8 billion following a CNY10 billion fundraising in March 2024, with another D+ round finalized by early October 2024.
Analysts predict that a mix of memory shortages, higher chip prices, and advances in domestic supply chain localization could lift CXMT's IPO valuation to as high as CNY300 billion, delivering momentum to its upstream packaging and equipment partners as China's memory industry hits a new growth milestone.
Article translated by Levi Li and edited by Jerry Chen
