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🇸🇬 Singapore /Economy & Trade

China's top chipmaker CXMT plans second Beijing plant, seeks funding

From The Straits Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • China's largest chipmaker, CXMT, plans to build a second memory-chip plant in Beijing.
  • The company is in financing talks with a local government-backed tech hub as it seeks to boost production amid a global chip shortage.
  • This expansion is part of Beijing's strategy to achieve chip self-sufficiency and compete with the US in strategic technologies.

China's largest chipmaker by market value, CXMT, is considering a significant expansion with plans for a second memory-chip plant in Beijing. The company is reportedly in financing talks with a tech manufacturing hub supported by the local government.

CXMT, China’s largest chipmaker by market value, is considering building a second memory-chip plant in Beijing and is in financing talks with a tech manufacturing hub backed by the local government.

— Sources familiar with the matterDescribing CXMT's expansion plans.

This move comes as CXMT aims to increase its production capacity amidst a global chip shortage exacerbated by demand for AI infrastructure. The expansion highlights the intense competition among Chinese local governments to attract CXMT, especially after its record-breaking US$8.6 billion IPO in July. Previously, CXMT was reported to be building new plants in Shanghai and Hefei, with potential to double its capacity upon completion.

The proposed new 12-inch plant in Beijing's Yizhuang area, where CXMT already operates a DRAM chip fab, is seeking at least 60 million yuan (S$11.4 million) in support. Other state-owned tech companies have also shown interest in participating in the financing, though talks are in early stages and the funding package could change.

Those projects, when fully operational, could double its capacity to more than 600,000 wafers per month.

— Sources familiar with the matterRegarding the potential impact of CXMT's ongoing and planned plant expansions.

CXMT's expansion is a key element of Beijing's broader strategy to build a self-sufficient chip industry and reduce its reliance on foreign technology, particularly in the face of fierce tech rivalry with the United States. While CXMT is the fourth-largest DRAM producer globally, it still significantly trails industry leaders Samsung Electronics, SK Hynix, and Micron.

CXMT is seeking at least 60 million yuan (S$11.4 million) in support from the development zone’s governing body, also known as the Beijing Economic-Technological Development Area, and other state-owned tech companies have also expressed interest in participating in the financing.

— Sources familiar with the matterDetailing the financing sought for the proposed Beijing plant.
DistantNews Editorial

Originally published by The Straits Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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