HOW DOES CXMT COMPARE WITH ITS GLOBAL RIVALS?
Despite becoming the world’s No 4 DRAM maker, CXMT remains behind industry leaders in advanced memory technologies, especially in high-bandwidth memory (HBM) chips, which are crucial to building AI accelerators from companies like Nvidia.
Samsung and SK Hynix dominate the HBM market and benefit from decades of manufacturing expertise, process technology and global customer qualification. Micron is also a major advanced memory supplier.
CXMT’s advantage lies elsewhere: it benefits from strong policy backing and access to state-linked financing.
Analysts said the company could also capitalise on growing demand from domestic customers seeking alternatives to foreign suppliers, which would allow it to gain market share even as it trails its global rivals technologically.
“Broadly speaking”, CXMT is a viable challenger to the top three memory chipmakers, said Ellie Wang, an analyst at Taiwan-based market intelligence firm TrendForce.
“As customers diversify their supplier base amid the shortage, CXMT should gain further opportunities.”
The interest in the company’s IPO “reflects investors’ overwhelmingly bullish sentiment toward China’s flagship domestic memory chip firm”, Larry Yang, chief economist of First Seafront Fund Management, said.
Going public allows CXMT to secure capital that will “lay a solid foundation” for expanding production capacity and spending on chip development, Yang added.
“Meanwhile, it will boost the company’s global influence and help lift its market share in the worldwide memory chip sector.”
That view was shared by Zhang Guobin, founder of Chinese specialist website eetrend.com.
He called CXMT’s IPO a “turning point in the global storage industry landscape and the development trajectory of China’s semiconductor sector”.
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