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 considering building a second memory-chip plant in Beijing's Yizhuang development zone and is in early-stage financing talks with the local government-backed tech 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 company already operates a DRAM fab in Yizhuang. CXMT is seeking at least 60 million yuan ($8.9 million) in support from the development zone's governing body, with other state-owned tech firms also expressing interest. The planned capacity and total investment for the new fab are not yet known, but building a leading-edge DRAM fab typically costs over $10 billion. CXMT's expansion highlights intensifying competition among Chinese local governments to attract the company, which has become a key pillar of Beijing's drive for chip self-sufficiency amid U.S.-China tech rivalry.