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CXMT shares surge after US blacklisting, spotlighting China chip push
The Reuters-linked piece says export controls cover 24 types of chipmaking equipment and three types of software, while Beijing has directed chipmakers to use at least 50% domestically produced equipment on new capacity.
China’s CXMT, a leading DRAM chipmaker, jumped 466% on its Shanghai Stock Exchange debut, valuing the company at 3.28 trillion yuan, or about $484.6 billion, and making it the most valuable mainland China onshore-listed company, according to Reuters as carried by LiveMint Markets.
The rise comes as CXMT faces heightened pressure from Washington after it was added to the Pentagon blacklist over alleged ties to China’s military and state apparatus. The article frames the key question as whether US restrictions could slow CXMT in the near term while simultaneously accelerating China’s effort to localize more of its chipmaking supply chain.
In the near term, the piece says advanced DRAM manufacturing depends on high-end lithography, deposition, etching, inspection, ion implantation, specialized materials, and design software. It also notes US export controls cover 24 types of chipmaking equipment and three types of software, while China still lacks strong domestic alternatives in areas such as EUV lithography and advanced inspection systems, and that CXMT remains about two generations behind global leaders in high-bandwidth memory.
At the same time, the article says the restrictions are creating stronger incentives to localize, with Chinese fabs reportedly increasing the use of domestically manufactured equipment from about 25% in 2024 to 35% in 2025, and domestic adoption in etching and thin-film deposition exceeding 40%. It adds that the piece points to Beijing guidance requiring chipmakers to use at least 50% domestically produced equipment when adding new capacity, and cites CXMT’s position as the world’s fourth-largest DRAM producer with about 7.7% global market share in 2025.