CXMT eyes second Beijing DRAM fab as capacity could double

China's largest DRAM maker, ChangXin Memory Technologies, is in early-stage talks to build a second 12-inch wafer fabrication plant in Beijing's Yizhuang district, a move that could more than double the company's production capacity and deepen its challenge to the world's dominant memory chipmakers.

Reuters ↘ 0.93% reported on August 3 that CXMT is seeking at least 60 billion yuan (roughly $8.9 billion) in funding from the governing body of the Beijing Economic-Technological Development Area, with some state-owned enterprises expressing interest in investing. The discussions remain at an early stage, and the size and structure of any funding package could still change.reuters+1

Capacity Could Double to 600,000 Wafers Per Month

CXMT currently operates three 12-inch DRAM fabs — two in Hefei and one already in Yizhuang — with a combined capacity of roughly 300,000 wafers per month. Combined with additional facilities under construction in Shanghai and Hefei, the proposed Beijing plant could lift total capacity to more than 600,000 wafers per month. Building a leading-edge DRAM fab typically costs more than $10 billion, according to industry estimates cited by Reuters.trendforce+2

The expansion discussions reportedly began before CXMT's blockbuster initial public offering on Shanghai's STAR Market in July, which raised approximately $8.6 billion and briefly made it mainland China's most valuable listed company. According to Counterpoint Research, CXMT's global DRAM market share rose from 3% in the first quarter of 2025 to 8% in the first quarter of 2026, placing it fourth worldwide behind Samsung Electronics, SK Hynix ↗ 5.29%, and Micron Technology ↗ 4.35%.biz.chosun+3

Global PC Makers Begin Adopting CXMT Chips

Separately, Nikkei Asia reported that HP ↘ 0.18%, Asus ASUSTeK Computer Inc., and Acer have begun using limited volumes of CXMT's DRAM in notebooks amid an unprecedented memory shortage driven by AI infrastructure demand. The chips are reportedly priced on par with those from leading suppliers rather than at a discount, and supply remains difficult to secure beyond the current quarter.digitimes+2

Market Impact and Limits of the Threat

The Reuters report accelerated a broader selloff in memory stocks that has been building since CXMT's IPO in late July. Analysts note, however, that CXMT remains concentrated in commodity DDR4 and is only beginning to move into DDR5, with no meaningful presence yet in high-bandwidth memory essential for AI accelerators. U.S. export restrictions on advanced semiconductor equipment also remain a constraint on CXMT's ability to close the technology gap with Korean rivals in cutting-edge processes.ad-hoc-news+2

Still, CXMT is advancing on multiple fronts. Bloomberg reported on August 4 that the company is preparing to manufacture advanced low-power LPDDR6 memory chips in small quantities, while China Daily cited experts saying CXMT is nearing completion of R&D validation for its first LPDDR6 chip, with volume production possible in the first half of 2027.chinadaily+1