Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, posted first-quarter revenue growth of more than 700%
CXMT, China’s largest memory-chip company, said first-quarter revenue rose 719.13% from a year earlier to 50.8 billion yuan, or about $7.0 billion, according to an investment prospectus released on May 17 ahead of its planned initial public offering.
CXMT’s first-quarter revenue and net income attributable to the parent surpassed those of all companies listed on China’s STAR Market, including Semiconductor Manufacturing International Corp., or SMIC, the country’s largest foundry.
CXMT said semiconductor prices have kept rising since the second half of last year, driving a rapid improvement in gross margin and helping the company return to profitability last year. It added that DRAM supply lagged demand in the first quarter as global computing demand continued to expand and major manufacturers adjusted capacity allocation.
CXMT operates three 12-inch DRAM wafer plants in Beijing and Hefei, Anhui province. Data from Omdia show the company ranks first in China and fourth globally in production capacity, shipments and revenue.
CXMT’s share of global DRAM sales rose to 7.67% in the fourth quarter of last year.
CXMT plans to raise 29.5 billion yuan, or about $4.1 billion, through an IPO this year and use the proceeds for wafer production lines and DRAM technology upgrades.