chip Photo:VCG

The share price of Chinese chipmaker ChangXin Memory Technologies (CXMT) surged more than 471 percent to 49.50 yuan ($7.31) per share on Monday's opening, the first day it debuts on Shanghai's STAR market. The share price further soared 531 percent to 54.65 yuan by the end of Monday's morning trading session.

The IPO is reportedly Asia's largest so far this year, the biggest Chinese A-share semiconductor offering ever, and it is also the largest IPO on the STAR market to date, marking a milestone in China's homegrown innovation and tech self-sufficiency amid the broad landscape of the country's economic upgrade.

The total market capitalization of the chipmaker, which is based in Hefei, East China's Anhui Province, reached 3.31 trillion yuan on the opening, surpassing that of Industrial and Commercial Bank of China (ICBC) to become the current largest company by market value in the A-share market. 

As of the end of Monday morning's trading session, CXMT's market capitalization has reached 3.66 trillion yuan ($540.67 billion), surpassing that of US-listed Intel, which stood at $465.6 billion as of the close on July 24.

In the morning trading session, the company's half-day turnover reached 122.1 billion yuan, making it the first stock in A-share history to see its single-day trading volume exceed 100 billion yuan.

"The successful listing of CXMT on the STAR market is not only an important milestone in the company's development, but also a new starting point for the high-end memory storageindustry to advance to a higher level," the company said in a statement sent to the Global Times on Monday. 

Going forward, CXMT will leverage the capital market platform, remain committed to innovation, continuously achieve breakthroughs in core technologies, accelerate the development of advanced manufacturing capabilities and product iteration and upgrades, the statement said.

The company will also "continuously enhance its global market competitiveness, and strive to build a world-class memory technology enterprise with international influence," it said.

CXMT is currently China's largest memory chip producer, and an important participator in the global memory chip industry. It is also the world's fourth-largest dynamic random-access memory (DRAM) maker behind SK Hynix, Samsung Electronics, and Micron, according to a Reuters report.

According to the prospectus, the proceeds from this offering will be primarily used for projects including the technological upgrading and renovation of memory wafer manufacturing mass-production lines, DRAM memory technology upgrades, and the research and development of forward-looking DRAM technologies. 

These initiatives aim to further enhance advanced manufacturing capabilities and innovation levels. At the same time, they will drive the coordinated development of the industrial chain covering equipment, materials, and components, providing strong support for the high-quality development of the integrated circuit industry, the prospectus said.

It is estimated that in the first six months of 2026, the company will achieve a revenue of 110 billion yuan to 120 billion yuan, representing a year-on-year increase of 612.53 percent to 677.31 percent. Net profit is expected to reach 50 billion yuan to 57 billion yuan, up 2,244.03 percent to 2,544.19 percent year-on-year, "demonstrating strong growth and operational resilience," per the prospectus.

Global Times