BEIJING: ChangXin Memory Technologies is considering a second CXMT Beijing plant and has begun early-stage funding talks with a local government-backed technology hub.
The proposed 12-inch DRAM factory would stand in Yizhuang, about 20 kilometres southeast of central Beijing. CXMT already operates a memory-chip plant in the development area.
CXMT is seeking at least 60 million yuan, or about $8.9 million, in support from the Beijing Economic-Technological Development Area, Reuters reported, citing two people familiar with the discussions.
Other state-owned technology companies have expressed interest in the financing. However, the talks remain preliminary, and the funding package could change.
The proposed factory’s production capacity and total investment remain unknown. Reuters said a plant capable of producing advanced DRAM chips typically costs more than $10 billion.
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Neither CXMT nor the Beijing municipal government responded to requests for comment. Therefore, neither side has publicly approved or confirmed the project.
CXMT currently operates two 12-inch DRAM factories in Hefei and one in Beijing. Each can produce about 100,000 wafers per month, per Reuters’ sources.
Separate projects in Hefei and Shanghai could more than double the company’s total capacity to over 600,000 wafers per month once fully operational.
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The talks follow CXMT’s $8.6 billion initial public offering in July. The Shanghai Stock Exchange began trading the company’s shares on July 27 under the stock code 688825.
CXMT ranks fourth in the global DRAM market. Samsung Electronics, SK Hynix and Micron controlled nearly 90% of the market during the first quarter, according to Counterpoint Research.
