China’s Memory Maker CXMT’s IPO Surge Sparks Global Debate
· chinamoneynetwork.com
Chinese chipmaker ChangXin Memory Technologies, or CXMT, experienced a meteoric rise, becoming China's most valuable company almost overnight. Following its Shanghai debut on July 27, CXMT's shares surged over 500%, closing the week with a market capitalization of 3.54 trillion yuan ($523 billion). This leap dethroned the Industrial and Commercial Bank of China as the chart leader. The sudden spike in CXMT's stock price has experts divided. Some view it as a temporary increase driven by AI-driven memory shortages, while others see it as a potential shift in global AI supply chains favoring Chinese chipmakers. Barbora Valockova, a research fellow at Singapore's Lee Kuan Yew School of Public Policy, cautioned that China's growth in the memory chip sector is influenced by AI demand, supply shortages, and state-backed policies, emphasizing that it does not signify broad catch-up with industry leaders. Valockova highlighted that despite the current chip shortages prompting companies to consider Chinese chip suppliers, adoption is expected to be selective and politically contentious, particularly in the U.S. A group of U.S. lawmakers, including Jim Banks and Chuck Schumer, penned a letter to Apple CEO Tim Cook on July 30, urging caution in procuring chips from 'blacklisted' Chinese semiconductor suppliers like CXMT and Yangtze Memory Technologies Co. The senators raised concerns about the firms' military ties, referring to an updated Pentagon list of Chinese entities supporting Beijing's military. While Apple grapples with a global memory supply shortage, CEO Tim Cook revealed significant constraints in the supply chain, leading to soaring product prices. Cook described the current memory pricing surge as a
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Chinese chipmaker ChangXin Memory Technologies, or CXMT, experienced a meteoric rise, becoming China's most valuabl...