CXMT commits RMB 34.9B to R&D and a second memory test base
Per a Sept 28 filing, CXMT will put RMB 24.1B into a technology R&D project and RMB 10.8B into its Hefei memory test base Phase II, using over-raised funds.
ChangXin Technology (CXMT) announced on the evening of September 28 that it will put part of its over-raised IPO funds into two projects: RMB 24.1 billion for a technology R&D project with a 30-month build (RMB 13 billion of it straight from over-raised funds), and RMB 10.8 billion for Phase II of its Hefei memory-wafer back-end testing base over 37 months, funded by a RMB 5 billion capital increase plus loans to wholly-owned subsidiary ChangXin Memory Products (Hefei). The filing’s stated rationale: testing is a critical, equipment-specific DRAM stage, and building it in-house removes an outsourcing bottleneck, cuts cost and strengthens the IDM model.
The facts
- R&D project: RMB 24.1B total, 30-month construction, RMB 13B from over-raised funds.
- Test base Phase II: RMB 10.8B total, 37 months; RMB 5B capital increase plus loans into the Hefei subsidiary, building a DRAM chip testing and module assembly plant.
- Funding source: part of CXMT’s over-raised IPO proceeds.
- Context: CXMT is China’s main DRAM maker; pulling back-end testing in-house consolidates its IDM integration.
Our take
Moving test capacity from outsourced to owned looks like cost-cutting in the short term; in the long term it puts yield and quality data inside the company — which matters most for the HBM business that AI servers are pulling. Every capacity move from China’s main DRAM maker belongs in supply-chain models as global memory gets reshuffled around AI demand. Read together with reports that China may approve RTX Pro 5500 purchases, the two compute-supply lines — domestic memory and imported GPUs — are loosening in parallel.