The AI breakthrough enabled CXMT in China to increase memory sales to over $8 billion, almost twice.

Chinese company CXMT demonstrates impressive revenue growth and prepares for a major IPO

A recent study by analytics firm Omdia showed that last year the fastest-growing memory chip manufacturers were Chinese players. The most striking example is CXMT, whose revenue grew 130 % to $8 billion.

Why it matters?

- Growth metric: CXMT’s momentum even surpasses the largest global producers such as Samsung, SK Hynix and Micron.

- Rapid revenue increase: Bloomberg reports that in the first three quarters of 2023 the company’s revenue doubled to $4.6 billion. In the fourth quarter, price acceleration for memory pushed the total to $8 billion.

- Profitability and investment: Despite significant capital outlays to expand manufacturing capacity, profitability remains questionable. Over the first three quarters of 2023 net losses were $767 million (a 1.79 % decline from the prior year), but adjusted net losses fell by 81 %.

Future plans

- Key metric: By the end of 2025 CXMT’s adjusted net profit reached $434 million.

- IPO on STAR: The company plans to list shares on China’s STAR market before the end of the current half‑year. The IPO is expected to be the largest in China in 2026.

- Use of proceeds: Proceeds from the initial offering are intended for modernization and expansion of production, as well as research and development – roughly $4.3 billion.

Current status

The company has not yet disclosed final results for 2023. In preparing for the IPO CXMT intends to provide investors with more detailed financial reporting. If the listing proceeds within the planned framework, it will be a significant event for both the Chinese and global memory markets.