Chinese chipmaker stock surges 500% on market debut
Tehran - BORNA - The company's stock rose 530 percent on Monday, pushing its market value to 3.65 trillion yuan, overtaking ICBC as the most valuable company in mainland China.
Changxin, a leader in memory chips in China, is the world's fourth-largest DRAM producer with about eight percent market share. The company aims to compete with South Korea's Samsung Electronics and SK Hynix, and US giant Micron, all of which have seen sharp gains in profits and stock prices in recent months.
The successful IPO raised 66.6 billion yuan, making it the largest technology share sale in mainland China to date, surpassing SMIC's 46.3 billion yuan offering in 2020.
Advanced memory chips are in high demand due to their key role in AI servers, alongside powerful data-processing semiconductors from companies like Nvidia. This has caused a severe shortage of DRAM chips used in laptops, phones, and other electronics, driving up prices.
Apple has reportedly begun testing Changxin's DRAM chips for use in its products.
China's government is increasingly relying on domestic hardware to strengthen its position in the AI race against the United States. The IPO will allow Changxin to secure capital to expand production capacity and invest in chip development, while increasing its global influence and market share in the memory chip sector.
Despite being listed on the Pentagon's Chinese companies with alleged military ties, this does not prevent American companies from doing business with Changxin.
End Article