CXMT is the number four memory maker in the world, behind Micron, Samsung, and SK Hynix. Its market share is believed to be somewhere around 8% of the worldwide market, with most of its customers in its native China.
CXMT does not make the High Bandwidth Memory (HBM) that is in such high demand for AI accelerators these days, but it does make DDR5 memory, and that is in very short supply as well. So, buyers will take whatever they can get.
On the financial side, CXMT has turned around its fortunes in recent months. Its first-quarter revenue was 50.8 billion yuan, or USD$7.5 billion, which represents a 719% increase from the same period last year. Operating profit swung from a 2.8 billion yuan (USD$390 million) loss in the first quarter of last year to a 35.4 billion yuan (USD$5 billion) gain with a 70% profit margin.
CXMT expects to use its IPO funds for aggressive expansion and investment in advanced processes. Monthly wafer production is projected to increase from 100,000 wafers in early 2024 to 300,000 wafers by the end of this year. The company is also expected to invest in production lines to enter the HBM market.
