China’s CXMT posts world’s highest memory chip margin, topping Samsung and SK Hynix

China's ChangXin Memory Technologies has emerged as the world's most profitable memory chipmaker, posting an 82% EBIT margin in the second quarter of 2026 — exceeding SK Hynix ↗ 0.94% at 76% and Samsung Electronics' semiconductor division at 70%, according to data from financial information provider QUICK FactSet first reported by Nikkei Asia. The result marks a dramatic reversal for a company that recorded a loss of 29 billion yen in the same quarter a year earlier.sedaily+1

A Windfall From Standard DRAM

CXMT's margin surge stems from a structural shift in memory chip supply and demand. As Samsung, SK Hynix, and Micron Technology ↘ 0.22% redirected production capacity toward high-bandwidth memory for AI servers, supply of standard DRAM tightened and DDR5 prices rose sharply. Taiwan's TrendForce concluded that HBM profitability has actually fallen below that of DDR5 since the first quarter of 2026 — a dynamic that has directly benefited CXMT, whose main products are commodity DRAM chips sold to customers including Alibaba ↗ 0.68%, ByteDance, and Tencent.finance.biggo+2

CXMT's first-half revenue reached 150.31 billion yuan (approximately $22.4 billion), up 874% year-on-year, swinging from a net loss to a net profit of 77.6 billion yuan. Second-quarter revenue alone surged 977% year-on-year. Counterpoint Research data cited in the attached reporting shows CXMT's global DRAM market share hit 10% in the second quarter, up from 4% a year earlier, making it the world's fourth-largest DRAM maker. Morgan Stanley projects CXMT's monthly wafer capacity will reach 300,000 by year-end and 500,000 by 2028.chosun+1

South Korea's Export Milestone and the Korea Discount

The rise of CXMT comes even as South Korea's semiconductor sector posts record numbers of its own. Data released September 11 by the Korea Customs Service showed cumulative semiconductor exports had reached $297.68 billion — approximately 400.5 trillion won — breaking the 400 trillion won mark for the first time. Semiconductor exports in the first ten days of September alone hit $16.48 billion, up 270.1% year-on-year, accounting for 47.1% of South Korea's total exports.biz.chosun+2

Yet the export boom has not fully translated into stock market enthusiasm. The Kospi, despite rising 67% year-to-date, remains roughly 26% below its all-time high. Goldman Sachs The Goldman Sachs Group, Inc. ↗ 0.92% data shows the index trades at just 4.3 times forward 2027 earnings, far below the Asia-Pacific average of 11 times. Clarence Lee, chief portfolio analyst at T. Rowe Price T. Rowe Price Group, Inc. ↘ 1.17%, said the so-called Korea discount "is unlikely to disappear in the near term simply because Samsung and Hynix are returning more cash. It remains partly structural and requires evidence of sustained participation from a broader universe of companies".finance.biggo

Competitive Landscape Far From Settled

The memory chip industry's profit picture underscores a broader competitive tension. Samsung and SK Hynix dominate the high-end HBM market essential for AI servers, but their pivot has created an opening in commodity DRAM that CXMT has seized with speed. As AllianceBernstein's ↘ 0.80% Sammy Suzuki noted, the current returns from Korean chipmakers largely reflect "the cash-generating capacity brought by an exceptionally prosperous memory chip cycle, rather than a fundamental shift in capital return philosophy".finance.biggo