Le Monde: CXMT Leverages AI Boom to Secure Asia’s Largest Fundraising, Becomes China’s Most Valuable Company
Le Monde stated on Tuesday that in recent years, the rapid development of artificial intelligence has led to a sharp increase in global demand for storage chips from AI companies, creating new growth opportunities for chip manufacturers. China is the world’s second-largest AI market, second only to the United States.
China’s largest memory chip manufacturer, ChangXin Memory Technologies (CXMT), went public on the Shanghai Stock Exchange on July 27. The IPO raised 57.9 billion yuan—making it the largest such offering in China in 15 years and the biggest fundraising project in Asia this year. On its debut day, the stock surged from its issue price of 8.66 yuan to 48.23 yuan, giving the company a market capitalization of 3.225 trillion yuan (approximately $476.2 billion), surpassing major state-owned banks and oil companies in China to become the country’s most valuable publicly listed company.
Le Monde published an article on Tuesday stating that in recent years, artificial intelligence has developed rapidly, driving a significant rise in global demand for storage chips among AI enterprises. This has created new growth opportunities for chipmakers. China ranks as the world’s second-largest AI market, behind only the United States.
The French newspaper pointed out that with rising demand, chip manufacturers have increased prices and prioritized production of high-performance chips for AI data centers. ChangXin Memory Technologies has thus benefited significantly.
Currently, ChangXin Memory Technologies is the fourth-largest producer of dynamic random-access memory (DRAM) chips globally, trailing only South Korea’s Samsung Electronics, SK Hynix, and the U.S.-based Micron Technology.
Although ChangXin’s technology is not yet the most advanced worldwide, the top three global players have redirected more resources toward high-bandwidth memory (HBM) chips needed for AI applications. As a result, competition pressure in traditional markets like smartphones and smart devices has eased, giving ChangXin greater room for growth.
ChangXin's performance has grown remarkably fast
In the first half of this year, ChangXin Memory Technologies achieved revenue of 50.8 billion yuan, a year-on-year increase of 719%. According to Reuters, the company plans to double its production capacity over the next few years. Two new factories are currently under construction, and another is in the planning stage.
Le Monde noted that ChangXin’s success also demonstrates that despite ongoing U.S. export restrictions aimed at slowing China’s progress in high-performance computing, some Chinese semiconductor firms have still made notable advancements.
Although ChangXin Memory Technologies has not been formally placed on the U.S. Department of Commerce’s export blacklist, since 2022, like other Chinese chip companies, it has had to undergo strict approvals for purchasing U.S. products and services.
Laila Khawaja, an analyst at Gavekal Technologies, said that due to the inability to obtain the most advanced manufacturing equipment, ChangXin has faced considerable challenges in producing high-bandwidth memory (HBM). While Chinese suppliers still lag in certain key technologies, Khawaja believes China will eventually overcome these issues—it’s just a matter of time.
Apple Discussing Collaboration with CXMT
Le Monde also cited Bloomberg reporting that Apple is currently discussing potential collaboration with ChangXin Memory Technologies, aiming to include CXMT’s chips in Apple’s supply chain. At the same time, Apple is actively lobbying in the United States to avoid government pressure stemming from this move.
Back in 2022, Apple had planned to use NAND flash chips produced by another Chinese firm, Yangtze Memory Technologies (YMTC), in iPhones and MacBooks. However, after pressure from U.S. lawmakers, Apple ultimately abandoned that plan.
Hefei: A Major Beneficiary
Le Monde concluded that another key beneficiary of ChangXin’s listing is Hefei, the capital city of Anhui Province. According to Reuters, Hefei holds approximately 36% of ChangXin’s shares through multiple investment funds. With ChangXin becoming China’s most valuable listed company following its public debut, these stakes are now highly valuable. For a city historically reliant on agriculture and economically underdeveloped, this marks a pivotal success.
Le Monde stated that in recent years, Hefei has consistently invested in high-tech startups, aiming to develop strategic emerging industries and drive industrial upgrading. ChangXin’s successful listing is seen as a crucial validation of Hefei’s investment model.
Laila Khawaja from Gavekal Technologies said Hefei is renowned for its “Hefei Model,” under which local governments act as long-term investors, willing to support high-risk tech startups over extended periods while promoting the development of complete industrial chains and nurturing globally competitive industry leaders. However, she noted that successful cases like ChangXin are difficult to replicate.
Source: rfi
Original Article: toutiao.com/article/1872099900492810/
Disclaimer: The views expressed in this article are those of the author(s).