CXMT signs multi-yr contract to supply server DRAM chips: RTRS
ChangXin Memory Technologies (CXMT), China’s leading domestic DRAM manufacturer, has reportedly signed a multi-year contract to supply server DRAM chips, according to a recent report by RTRS. This development underscores the company’s growing role in the global memory market and its ability to compete with industry leaders such as Samsung, SK Hynix, and Micron.
CXMT, which is preparing for one of China’s largest semiconductor IPOs, has demonstrated rapid growth in recent years. In 2025, the company reported a 156% year-over-year revenue increase to approximately $8.6 billion, with net income turning positive for the first time at $1 billion. By the first quarter of 2026, CXMT’s revenue had surged to $7.3 billion, reflecting a 700% year-over-year increase and an operating margin of approximately 70%.
The company’s ability to secure a long-term contract for server DRAM chips highlights its expanding market share and technological capabilities. While CXMT’s global bit shipment share is expected to rise from 9% in 2025 to 12% in 2027, its ASP (average selling price) has remained competitive with industry leaders, trailing by only 5–10% in the first quarter of 2026. This pricing strength has been a key driver of CXMT’s margin improvement, with gross margins reaching 37.8% in fiscal year 2025, up from negative figures in previous years.
The server DRAM segment is particularly lucrative, with higher ASPs and margins compared to consumer-grade memory. As server and HBM (High Bandwidth Memory) demand continues to grow—projected to account for over 50% of the DRAM market by 2027—CXMT’s focus on this segment positions it to benefit from favorable pricing trends.
Despite its progress, CXMT still faces challenges in HBM production, where yields and technical hurdles remain significant. The company’s current wafer capacity is expected to reach 350 kwspm by end of 2026, placing it among the top three DRAM suppliers by capacity. However, it remains behind Samsung and SK Hynix, which are estimated to have capacities of 720 and 595 kwspm, respectively.
The multi-year contract is also a strategic win for CXMT as it seeks to solidify its position in the global market. With the company’s IPO on the horizon and continued support from state-backed venture capital, CXMT is well-positioned to expand its memory market footprint in both commodity and high-performance memory markets.
