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CXMT plans US$5.2b expansion with heavy spend on equipment suppliers
CXMT will allocate about 93.0% of its new technology R&D budget to equipment purchases, and it plans a second phase wafer testing base.
Chinese memory chip maker ChangXin Memory Technologies (CXMT) plans to invest 34.9 billion yuan, about US$5.2 billion, in an expansion that will prioritize domestic suppliers of chipmaking equipment, according to a Monday stock filing reviewed by SCMP Economy.
The company, listed on the Shanghai Stock Exchange’s Star Market, said it will spend 24.1 billion yuan on a new technology research and development project and 10.8 billion yuan on a second phase of a wafer testing base.
The filing indicates nearly 22.4 billion yuan, about 93.0% of the R&D project’s budget, will go toward equipment purchases, underscoring the capital intensity of its push to move into more advanced DRAM products.