China’s CXMT to favour domestic suppliers in US$5.2b memory-chip capacity push: source

Chinese memory chip giant ChangXin Memory Technologies (CXMT) intends to allocate nearly 24.1 billion yuan towards expanding its technology research and development project and constructing a second phase of a wafer testing base, according to a recent stock filing. The company, valued as the most prominent on mainland China's stock market, has earmarked 34.9 billion yuan for expansion, primarily targeting domestic suppliers of chipmaking equipment.

Nearly 22.4 billion yuan, or approximately 93 percent of the R&D project's budget, would be allocated to equipment purchases, as per the filing. CXMT plans to utilize 18 billion yuan of its July initial public offering proceeds to fund these new projects, although shareholder approval is still pending. The firm's investment plan indicates a strong focus on bringing more production processes in-house, aiming to decrease reliance on external packaging and testing suppliers as wafer output and product variety rise.