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Chengxin Memory Technology, a leading supplier of dynamic random-access memory chips worldwide, has received approval from the Shanghai Stock Exchange for its initial public offering, which is set to become the largest IPO in mainland China since 2022.
The company has been authorized to list on the SSE’s Nasdaq-style STAR Market, according to the exchange’s announcement yesterday. It intends to issue 10.6 billion shares to raise approximately CNY29.5 billion (around USD4.4 billion), making it the second-largest IPO ever on the Science and Technology Innovation Board.
According to its prospectus, Chengxin Memory Technology currently holds the top position in DRAM manufacturing capacity within China and ranks fourth globally. However, a noticeable gap remains between it and the top three international industry leaders.
Although the planned funds of nearly CNY30 billion are significant, Yang Haiyan, a senior analyst at SWS Research specializing in electronics, pointed out that the capital required for future growth is much higher. Building a wafer fabrication plant, for example, demands investments in the hundreds of billions of yuan.
“As a prominent domestic DRAM enterprise, this IPO will boost the development of upstream sectors such as equipment, materials, and packaging, as well as the downstream memory industry chain,” Yang explained.
He noted that Chengxin Memory’s expansion will generate continuous demand for semiconductor manufacturing equipment and materials, encouraging suppliers to expedite product validation and large-scale deployment. It will also foster deeper integration among midstream packaging and testing firms, downstream memory module manufacturers, and local core wafer fabs, providing downstream companies with more flexibility to meet market needs.
Yang highlighted that the value of DRAM has increased in AI computing infrastructure, with its share in computing racks rising to approximately 20 percent from less than 10 percent last year. He anticipated that, in the coming years, the industry will continue experiencing tight supply as AI applications advance and become more industrialized.
Last year, Chengxin Memory Technology reported a net profit of CNY1.9 billion (roughly USD280.3 million), after suffering a loss of CNY16.3 billion (about USD2.4 billion) in 2023 and CNY7.1 billion in 2024, according to its filings. Its revenue jumped 156 percent to CNY61.8 billion in 2025 compared to the previous year.
In the first quarter of this year, the company’s profit exceeded CNY33 billion, nearly CNY24.8 billion of which was attributable to parent company owners. Its revenue increased more than eightfold year-over-year, reaching CNY50.8 billion.
The company’s improved financial performance is attributed to the rising global demand for computing power, ongoing supply shortages of DRAM, and increasing prices.
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