China memory chipmaker CXMT's shares soar in a blockbuster share listing in Shanghai

Shares of CXMT, China's largest memory chipmaker, surged 472% on their first day of trading on the Shanghai Stock Exchange's STAR market, giving the company a market capitalization of about 3.3 trillion yuan ($487 billion). The IPO raised at least $8.6 billion, making it mainland China's second-largest ever, as CXMT benefits from booming demand for AI-related memory chips and China's push for semiconductor self-sufficiency amid U.S. export restrictions.

HONG KONG AP — Shares of CXMT, China's largest memory chipmaker, soared Monday after they began trading in Shanghai in mainland China's biggest initial public stock offering in recent years. CXMT's shares surged 472% and were trading up 462% by early afternoon. It has become the most valuable company listed on a mainland Chinese exchange, with a market capitalization of about 3.3 trillion yuan more than $487 billion . But its estimated market value is still smaller than those of South Korean and American memory chipmakers like Samsung Electronics https://apnews.com/article/korea-samsung-ai-hynix-chips-22352d95c7a821c5f4548b2d1a4ebde8 , SK Hynix https://apnews.com/article/sk-hynix-nasdaq-memory-chips-nvidia-73f13a85ae00e30bad0540281bbe44f3 and Micron Technology https://apnews.com/article/stocks-markets-iran-trump-oil-71cc7b49f2ca3462a118878c93c75940 . CXMT, is among many chipmakers that have profited mightily from the boom in artificial intelligence. https://apnews.com/hub/artificial-intelligence Its business is thriving as China pushes for greater self-sufficiency in leading edge technologies while contending with limited access to advanced chipmaking machines due to American-led restrictions https://apnews.com/article/ai-chips-nvidia-huawei-china-1ae6228c4928ddbb43f984e9b38f49dd . The company raised at least $8.6 billion with the offering, priced at 8.66 yuan $1.3 per share, in its listing on the Shanghai Stock Exchange's Nasdaq-like STAR market, also known as the Science and Technology Innovation Board. It was mainland China's second largest IPO after the $22.1 billion share offering of Agricultural Bank of China in Shanghai and Hong Kong in 2010. Founded in 2016 in the eastern city of Hefei, CXMT is one of the world's largest makers of DRAM, or "dynamic random access" memory chips, a kind of semiconductor used in everything from AI servers to autos and consumer electronics like 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 in China's technology policies. U.S. restrictions have also barred China from importing powerful HBM, or high-bandwidth memory chips – a type of DRAM chip. The company's revenue surged to 50.8 billion yuan $7.5 billion on jumping demand from the rapid rise of AI in the first three months of 2026, a more than 700% rise year-on-year. Soaring use of AI has led to a global memory chip shortage, driving up prices https://apnews.com/article/apple-mac-ipad-price-increase-neo-fe95fe57dfa9b4a9917d68df5dcfe0e3 for some computers and smartphones. One big question, Chan said, is whether CXMT could help with the broader shortage. CXMT is seen as China's https://apnews.com/hub/china best shot at developing its own cutting-edge HBM chips to power Chinese AI models, Chan said. But it also faces many challenges, including supply chain bottlenecks in scaling up manufacturing capacity, since its access to the world's most best chipmaking tools is highly restricted, forcing it to depend on Chinese equipment makers.