Chinese memory maker CXMT is ramping up DRAM production to address a global supply squeeze caused by the tech industry's shift toward AI hardware. Backed by new factories, large domestic contracts and interest from international consumer brands, the company aims to reach 600,000 wafers per month by 2028.
The starting point is that major producers such as Samsung, SK hynix and Micron are concentrating output on high-bandwidth chips for AI servers, leaving less memory for everyday devices. In this scenario CXMT, China's largest DRAM maker, is investing billions to expand its plants after an $8.66 billion IPO on Shanghai's STAR Market.
New factories and rising capacity
According to TrendForce and Counterpoint Research, CXMT currently produces around 320,000 DRAM wafers a month and plans to add 100,000 within a year. The company is building new plants in Beijing, Shanghai and Hefei. A second 12-inch plant will be built in Yizhuang, about 20 km southeast of central Beijing, where CXMT already runs a DRAM fab, according to sources cited by Reuters who asked not to be named.
Deals with ByteDance, Tencent and Apple
As standard DRAM supply tightens, major tech companies are turning to CXMT to keep their supply chains moving. The company signed a $3 billion contract with Tencent and a five-year deal worth over $7 billion with ByteDance. Apple has also reportedly explored buying CXMT memory for devices built and sold in China.
The shortage gives CXMT real leverage on pricing: some domestic buyers have paid over $1,240 for 64GB DDR5 server modules, more than Samsung's going rate.
The new 4F-squared design
CXMT also drew attention when President Cao Kanyu announced next-generation DDR5 server memory for late 2026, built on a 4F-squared cell architecture that shrinks memory cells by roughly a third. The announcement briefly pushed Samsung and SK hynix shares down more than 7% and 10%.
Experts at Hanyang University and Samsung Securities caution, however, that building a working prototype is very different from mass-producing it cheaply. Samsung and SK hynix are developing their own 4F-squared designs, and CXMT still has to prove it can reach high yields without driving up costs.
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