CXMT Plans Second Beijing Fab to Double DRAM Capacity After Record IPO

Chinese DRAM maker CXMT is in early talks to build another memory chip plant near Beijing, aiming to double capacity to 600,000 wafers per month, a move that could reshape the global DRAM market.

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CXMT, the world's fourth-largest DRAM manufacturer, is planning to construct another memory chip plant near Beijing, according to sources familiar with the matter. The new facility is intended to produce memory chips currently in short supply, building on the company's recent record-breaking IPO.

The investment volume for the new plant has not been disclosed, but industry experts note that a typical fab producing leading-edge memory chips costs over $10 billion. CXMT is already building fabs in Shanghai and Hefei, and its current operations include two 12-inch DRAM fabs in Hefei and one in Beijing, each with a capacity of about 100,000 wafers per month.

With the new plants, CXMT's capacity is expected to double, reaching 600,000 wafers per month. The company is on track to finish 2026 producing about 350,000 DRAM wafers per month, compared to Micron's approximately 375,000. CXMT envisions tripling its baseline output to 600,000 wafers per month as expansion phases reach full operational status.

The proposed Beijing plant would be a 12-inch facility located in Yizhuang, about 20 kilometers southeast of central Beijing. CXMT is seeking at least 60 million yuan ($8.9 million) in support from the Beijing Economic-Technological Development Area, according to sources. The talks are at an early stage, and the size and structure of the funding package could change. The planned capacity and total investment for the proposed fab are not immediately known.

CXMT's existing Beijing fab is operated by Changxin Jidian, founded in 2020, which received funding from E-Town Capital and Beijing E-Town Technology. The company's construction speed is notable: cleanrooms typically take rivals about two years to build, but CXMT compresses that to about 12 months.

CXMT's rapid expansion comes after its IPO on the Shanghai Stock Exchange raised $8.6 billion, the largest mainland Chinese semiconductor listing on record. The stock rose 466% on debut, making CXMT China's most valuable listed company. In the first quarter, CXMT's revenue grew more than 700% year-over-year.

The company holds about 8% of the global DRAM market, while Samsung, SK Hynix, and Micron together control roughly 90%. CXMT plays an important role in the Chinese government's technological self-sufficiency plans and receives massive support.

The vast majority of CXMT's incoming output will be consumed domestically, by Chinese hyperscale cloud providers, smartphone makers, robotics companies, and AI labs. This domestic focus could intensify US-China tech rivalry as CXMT aims to reduce reliance on foreign memory chips.

CXMT and the Beijing city government did not respond to requests for comment. The company is also in financing talks with a tech manufacturing hub backed by the local government, according to Reuters, citing sources.