ChangXin Memory Technologies (CXMT), China’s premier chipmaker, has reported an 873.64% year-on-year revenue increase for the first half of 2026.
On Friday, the Hefei-based company, known for its dynamic random-access memory (DRAM) products, revealed revenue of 150.31 billion yuan ($22.4 billion) for the six months ending June, reported the South China Morning Post.
Shareholders saw a net profit of 77.61 billion yuan ($10.8 billion), a sharp turnaround from the 2.33 billion yuan ($325 million) loss reported in the same period last year. The results also far exceeded CXMT’s pre-IPO guidance, which had projected first-half revenue of 110 billion to 120 billion yuan ($15.3 billion to $16.7 billion) and net profit of 50 billion to 57 billion yuan ($7 billion to $7.9 billion).
The earnings surge was driven by soaring demand for memory products from the artificial intelligence industry. CXMT also benefited from higher production and an improved product mix as it ramps up output of newer products, including DDR5 memory used in personal computers, workstations and servers.
CXMT Gains Ground Amid Chip Shortage
This financial disclosure comes on the heels of CXMT’s Shanghai listing last month, which catapulted it to the status of China’s most valuable publicly traded company.
This was followed by major PC manufacturers like HP Inc. (NYSE:HPQ), Asus, and Acer incorporating CXMT’s DRAM chips in their laptops, despite a global chip shortage. CXMT chips have limited adoption in laptops, with only a few models using them as the Chinese chipmaker prioritizes domestic customers like Huawei. PC makers are also cautious about wider adoption to avoid straining relationships with major memory suppliers such as Micron Technology Inc. (NASDAQ:MU), Samsung Electronics (OTC:SSNLF), and SK Hynix Inc. ADR (NASDAQ:SKHY).
In July, a report suggested that Apple Inc. (NASDAQ:AAPL) had begun testing Chinese memory maker CXMT’s DRAM chips for products sold in China as global memory supplies tighten. Meanwhile, U.S. tech firms are pushing for broader access to their products, viewing CXMT as a potential fourth major global DRAM supplier. Apple also raised prices on several products in June, citing the ongoing memory chip shortage.
However, Sen. Jim Banks (R-IN) and Senate Minority Leader Chuck Schumer (D-N.Y.) warned against using CXMT’s memory chips due to the company’s inclusion in the Pentagon’s list of Chinese companies allegedly supporting Beijing’s military.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Alexander56891 from Shutterstock
Login to comment