Exclusive: CXMT plans second chip plant in Beijing, in talks on funding

Published Aug 3, 08:24 AM UTC

CXMT, China's largest chipmaker by market value, is planning to build a second memory-chip plant in Beijing's Yizhuang development zone and is in early-stage financing talks with the local government-backed tech manufacturing hub. The move follows CXMT's record $8.6 billion IPO last month and aims to boost production amid a global chip shortage driven by AI infrastructure spending. The new 12-inch DRAM fab would add to CXMT's existing facilities in Hefei and Beijing. The company is seeking at least 60 million yuan ($8.9 million) in support from the development zone. The expansion highlights intensifying competition among Chinese local governments to attract CXMT, which is a key pillar of Beijing's drive for semiconductor self-sufficiency. CXMT remains far smaller than global leaders Samsung, SK Hynix, and Micron, but its growing dominance in China has enabled it to raise prices for customers like Huawei.