China’s CXMT to favour domestic suppliers in US$5.2b memory-chip capacity push: source
Chinese memory chip giant ChangXin Memory Technologies (CXMT) plans to invest 34.9 billion yuan (US$5.2 billion) in expansion, with a large portion of the capital going to domestic suppliers of chipmaking equipment, according to a source. The firm, listed on the Shanghai Stock Exchange’s Star Market, would spend 24.1 billion yuan on a new technology research and development project and another…
Chinese memory chip company ChangXin Memory Technologies (CXMT) is set to allocate a substantial portion of its US$5.2 billion investment into expanding its production capabilities, with a focus on local suppliers. The firm, currently the most valuable company on mainland China's stock market, plans to utilize funds from its July initial public offering to finance these projects, although shareholder approval is still pending.
The spending plan includes 24.1 billion yuan on a new technology research and development project, and 10.8 billion yuan on the second phase of a wafer testing base, with nearly 22.4 billion yuan, or around 93%, of this budget dedicated to equipment purchases. A significant share of this equipment spending is anticipated to be directed towards Chinese suppliers, according to a source close to the company's supply chain.
CXMT's investment strategy is indicative of its commitment to bolstering its domestic production, as it aims to reduce its dependence on overseas semiconductor suppliers, in line with Beijing's broader efforts to decrease reliance on foreign chipmakers.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
