Changxin Memory Technologies, a leading Chinese memory semiconductor company, is expected to pursue an initial public offering (IPO) worth more than 19 trillion won within this year, Bloomberg reported on the 20th, citing sources. With the U.S. intensifying semiconductor regulations targeting China, attention is focused on whether the IPO will proceed as planned.
According to the report, Changxin Memory aims to list on the STAR Market (Ke Chuang Ban) of the Shanghai Stock Exchange, which is similar to Nasdaq, within this year. The company is currently in the process of selecting underwriters, and the IPO size has not yet been finalized. It is known that Changxin Memory aims to be valued at over 100 billion yuan (approximately 19.2 trillion won) through this IPO.
Changxin Memory is one of the companies receiving state investment to dominate the memory semiconductor market at the forefront of China's semiconductor ambitions. Although it is the first Chinese company to successfully produce DRAM, its current global market share is less than 1%. The DRAM market is currently dominated by domestic semiconductor companies such as Samsung Electronics and SK Hynix, as well as U.S. company Micron.
However, whether Changxin Memory's IPO will proceed smoothly remains to be seen, as the U.S. continues to impose semiconductor regulations targeting China. Bloomberg stated, "With the Biden administration blocking Chinese companies' access to various advanced technologies from software to manufacturing equipment, it is unclear how investors will view the IPO."
Previously, in December last year, the U.S. blacklisted Chinese semiconductor company Yangtze Memory Technologies, restricting China's advanced 3D NAND flash manufacturing capabilities. Before the U.S. sanctions, Yangtze Memory was in talks to supply semiconductors for Apple's iPhone. Moreover, the U.S. sanctions have also effectively neutralized Huawei's smartphone business.
A Changxin Memory official declined to comment on the IPO plans and stated that the company is currently focusing on research and core business, Bloomberg reported.
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