CXMT Considering Second Chip Plant in Beijing Amid Expansion Plans
China's largest chipmaker by market value, CXMT, is considering building a second memory-chip plant in Yizhuang, southeast of central Beijing. The company is currently discussing funding with the local government-backed tech manufacturing hub and other state-owned entities. This expansion aligns with its broader strategy to increase production capacity amid global chip shortages driven by AI infrastructure demand. CXMT has already begun constructing new facilities in Shanghai and Hefei, which are expected to double its monthly wafer output to over 600,000 units when fully operational. The Beijing plant would join the company's existing DRAM fabrication site there. While details on funding structure or total investment remain unclear, CXMT is seeking at least $8.9 million in support from local authorities. The expansion follows a successful $8.6 billion IPO last month—the largest mainland Chinese semiconductor listing to date—and has contributed to a 13% rise in the company's stock price since its market debut.
Topics: China's Tech Industry Chip Production Government Funding Semiconductors