China's Memory Chip Makers Draw Global Attention After CXMT's Market Surge

China's memory chip industry is attracting increased global attention following the remarkable stock market debut of ChangXin Memory Technologies (CXMT), Angelica Ang reported for Fortune Tech.

ChangXin Memory Technologies has become one of China's most valuable listed companies following its blockbuster market debut. [Photo: CXMT]

CXMT's shares surged more than 500 percent following their Shanghai Stock Exchange debut on July 27, lifting the company's market capitalization to 3.54 trillion yuan (about US$523 billion) and surpassing that of the Industrial and Commercial Bank of China (ICBC).

Analysts remain divided over whether the rally represents a lasting transformation in China's semiconductor industry or a short-term market phenomenon driven by strong demand for AI-related memory chips.

"China is clearly becoming a more important memory chip player, but this is happening in a market distorted by AI demand, supply shortages, and state-backed industrial policy," said Barbora Valockova, a research fellow at Singapore's Lee Kuan Yew School of Public Policy.

She added that the development does not necessarily mean China has caught up with global leaders across the broader semiconductor industry.

Although global memory shortages are prompting some companies to consider Chinese suppliers, adoption remains politically sensitive, particularly in the United States.

On July 30, a group of U.S. lawmakers urged Apple Chief Executive Tim Cook to avoid sourcing chips from Chinese companies including CXMT and Yangtze Memory Technologies Co. (YMTC).

Kong Tuan Yuen, a research fellow at the National University of Singapore, said global companies are still likely to treat Chinese memory suppliers as secondary sources rather than primary partners.