Shares of CXMT, China’s largest memory chipmaker, surged 466% on Monday as they began trading in Shanghai in mainland China’s biggest initial public offering (IPO) in recent years.
The sharp rise made CXMT the most valuable company listed on a mainland Chinese stock exchange, with an estimated market capitalisation of about 3.3 trillion yuan (more than $487 billion).
However, its valuation remains below those of major South Korean and US memory chipmakers such as Samsung Electronics, SK Hynix and Micron Technology.
CXMT, or ChangXin Memory Technologies, is among the Chinese chipmakers benefiting significantly from the boom in artificial intelligence. Its business is expanding as China seeks greater self-reliance in advanced technologies while facing limited access to sophisticated chipmaking equipment because of US-led export restrictions.
The company raised at least $8.6 billion through the offering, with shares priced at 8.66 yuan ($1.30) each. The shares were listed on the Shanghai Stock Exchange’s Nasdaq-style STAR Market, formally known as the Science and Technology Innovation Board.
The IPO was mainland China’s second-largest after Agricultural Bank of China raised $22.1 billion through a share offering in Shanghai and Hong Kong in 2010.
Founded in 2016 in Hefei in eastern China, CXMT is one of the world’s largest producers of DRAM, or dynamic random access memory chips. These semiconductors are widely used in AI servers, automobiles and consumer electronics such as smartphones and personal computers.
“CXMT plays a critical role in China’s AI push, particularly in the face of U.S. export controls,” said Kyle Chan, a fellow at the Brookings Institution and an expert on China’s technology policies.
US restrictions have also prevented China from importing powerful HBM, or high-bandwidth memory chips, a high-performance type of DRAM.
CXMT’s revenue jumped to 50.8 billion yuan ($7.5 billion) in the first three months of 2026, an increase of more than 700% year-on-year, driven by rising demand linked to the rapid growth of AI.
The growing use of AI has contributed to a global shortage of memory chips, pushing up prices of some computers and smartphones.
One key question is whether CXMT can help ease the broader shortage, Chan said.
He said CXMT is regarded as China’s strongest prospect for developing its own advanced HBM chips to power Chinese AI models.
But the company faces several challenges, including supply chain bottlenecks that could hinder efforts to expand manufacturing capacity. Its access to the world’s most advanced chipmaking equipment is heavily restricted, forcing it to rely on Chinese equipment manufacturers.
According to technology research firm Counterpoint Research, CXMT was the world’s fourth-largest DRAM memory chipmaker by shipments in 2025, accounting for roughly 8% of the global market.
Samsung Electronics held 36% of the market, followed by SK Hynix with 29% and Micron with about 24%.
CXMT accounted for around 9% of global shipments in the first three months of this year. Counterpoint forecasts its market share could reach about 11% by 2028, although the research firm estimates the company would need at least a 15% global share to remain competitive over the long term.
“Trade restrictions on tools are remaining as the key challenge for CXMT,” said MS Hwang, a research director at Counterpoint specialising in memory semiconductors.
Some US lawmakers have recently urged President Donald Trump’s administration to block American companies from purchasing CXMT memory chips, citing national and economic security concerns.
CXMT is among several Chinese companies that the Pentagon says have links to the Chinese military. Beijing has rejected such designations in most cases.
CXMT’s share offering came after South Korean chipmaker SK Hynix raised $26.5 billion through an IPO on the Nasdaq earlier this month.