CXMT Corporation, the parent of Chinese memory chip maker ChangXin Memory Technologies (CXMT), plans to raise 29.5 billion yuan ($4.2 billion) in an initial public offering in Shanghai to finance technology upgrades, according to a stock exchange filing, as Beijing pushes for greater technological self-reliance amid rising geopolitical tensions.
The Shanghai Stock Exchange said late on Tuesday that it had received CXMT Corporation’s application to list on its Nasdaq-style STAR Market, marking a key step toward a public listing for China’s largest designer and manufacturer of dynamic random-access memory (DRAM) chips.
The proposed flotation comes as China accelerates efforts to reduce dependence on foreign semiconductor technology in the face of U.S.-led export controls that have restricted Chinese firms’ access to advanced chipmaking equipment and components.
CXMT, founded in 2016 and based in Hefei, Anhui province, is China’s leading producer of DRAM chips, a core component used in smartphones, personal computers and data centres. The company has been expanding capacity and developing more advanced manufacturing processes as it seeks to close the technological gap with global leaders such as Samsung Electronics, SK Hynix and Micron Technology.
Proceeds from the IPO would be used mainly for research and development, process upgrades and the expansion of production facilities, the filing showed, reflecting the capital-intensive nature of memory chip manufacturing.
The listing application did not disclose the company’s valuation or a timetable for the IPO, which is still subject to regulatory approval.
China has stepped up support for its domestic semiconductor industry in recent years through state funding, tax incentives and policy backing, aiming to build a more self-sufficient chip supply chain as tensions with the United States and its allies reshape the global technology landscape.
Memory chips remain a strategic weak spot for China, which still relies heavily on imports for high-end components despite rapid progress by domestic players. A successful IPO by CXMT Corporation would provide a significant financial boost to the country’s ambition to build a globally competitive memory chip industry.
Shares in global memory chip makers were little changed following the news.
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