ChangXin Memory Technologies (CXMT), China's largest memory chipmaker, is reviewing plans to build an additional memory chip plant in Beijing. The move is seen as a response to growing demand for memory chips, including from artificial intelligence (AI) infrastructure.
On the 3rd, Reuters reported, citing multiple sources, that CXMT is considering building a new 12-inch memory chip plant in the Yizhuang area in southeastern Beijing, and is in talks with the Beijing Economic-Technological Development Area on financing. CXMT is requesting support of more than 60 million yuan (about 12.7 billion won) from the development area's management authorities, the sources said. Some state-owned enterprises have also expressed intent to participate in the investment, according to the report.
Yizhuang, home to a cluster of Chinese advanced industries such as semiconductors and humanoids, is where CXMT has operated a DRAM plant since 2020. When CXMT established that DRAM plant, it also received funding from a state-run investment institution in the Yizhuang development area.
However, the sources said the talks are still in the early stages, and the scale of investment and the financing method could change in the future. The industry estimates that building an advanced memory chip production plant typically requires more than $10 billion (about 14.3 trillion won).
The negotiations are known to have begun before CXMT's listing on China's stock market on the 27th of last month. They are aimed at responding to growing demand for memory chips from AI infrastructure, data centers and home appliances. Reuters had earlier reported that CXMT is also pursuing new plant construction in Hefei, Anhui province, where its headquarters is located, and in Shanghai, and is holding investment talks with other local governments. If all of these plans are realized, CXMT's monthly production capacity is expected to increase to 600,000 units, about double the current level. CXMT currently operates a total of three plants in Beijing, Hefei and elsewhere, with each plant producing about 100,000 units per month.
Meanwhile, the Chinese government, which has led chip self-reliance amid conflict with the United States, has recently moved to strengthen the protection of semiconductor technology. According to Reuters, on the 3rd, China's Ministry of Justice and the National Intellectual Property Administration announced they would revise protection regulations related to semiconductor chip layout design, to take effect on October 15. The key content is tightening registration standards and allowing punitive damages for serious infringement. Chinese policy authorities are also reportedly reviewing additional measures to prevent the transfer overseas of strategically important technology or acquisitions by foreign companies.
