China’s CXMT Chases Samsung, SK Hynix After DRAM Share Hits 8%, Stock Jumps 466%

CXMT’s global rise draws scrutiny as South Korea hears tech-leak cases

Global DRAM share climbs from 3% to 8% in a year

Nine in 10 respondents say penalties for leaking core technologies should be tougher

ChangXin Memory Technologies Inc., China’s largest DRAM maker, is rapidly gaining global market share and closing in on Samsung Electronics Co., SK Hynix Inc. and Micron Technology Inc. The company has built scale on the back of China’s domestic market and heavy investment. In South Korean courts, meanwhile, former Samsung employees have repeatedly received prison terms for leaking semiconductor technology to CXMT.

DRAM share rises to 8% as CXMT gains on memory leaders

CXMT listed on Shanghai’s STAR Market, the Shanghai Stock Exchange’s tech-focused board, on July 27, according to the industry on July 31. The stock, priced at 8.66 yuan in the offering, closed its first trading day at 49 yuan, a 466% jump. Its market value at the close approached 3.3 trillion yuan, or about $460 billion, making it the largest company listed on mainland Chinese exchanges by that measure.

The company raised about 57.9 billion yuan, or roughly $8.1 billion, in the initial public offering. That was nearly double the 29.5 billion yuan, or about $4.1 billion, set out in its prospectus. CXMT plans to use the proceeds to expand production capacity, upgrade DRAM processes and fund research and development for next-generation technologies.

The market is focused on the company’s rapid share gains. Counterpoint Research said CXMT’s share of the global DRAM market rose to 8% in the first quarter of 2026 from 3% a year earlier. That made it the world’s fourth-largest DRAM maker, behind Samsung Electronics, SK Hynix and Micron.

While Samsung Electronics, SK Hynix and other established memory makers concentrated production on high-bandwidth memory for artificial intelligence data centers, CXMT expanded supply of commodity DRAM. It has been increasing capacity with support from China’s domestic market and government backing, narrowing the gap with the top three memory makers.

Prison terms mount in South Korea over technology leaks tied to CXMT

CXMT is hardly unfamiliar in South Korea. The company has surfaced repeatedly in court cases centered on alleged technology leaks, fueling questions over how it advanced so quickly. Most recently, in April, South Korean courts handed prison terms on back-to-back days to former Samsung employees accused of passing the company’s DRAM technology to CXMT.

The Seoul High Court’s Criminal Division 10-1 sentenced a former Samsung manager surnamed Kim on April 23 to six years and four months in prison and a 200 million won fine, or about $145,000, according to the legal community. He was charged with violations of the Industrial Technology Protection Act and other offenses. Prosecutors said he leaked Samsung’s 18-nanometer DRAM process information, classified as a national core technology, to CXMT.

Kim was also accused of taking technical materials including deposition equipment design drawings from Eugene Technology Co., a South Korean semiconductor equipment maker. An appellate court had earlier sentenced him to six years in prison and a 200 million won fine. The Supreme Court then sent the case back to the Seoul High Court, saying the transfer of trade secrets between accomplices could itself constitute a separate act of infringement.

In the remanded case, the court said the defendant had unlawfully acquired Samsung trade secrets and used them in China, making the offense particularly grave. It said violations involving industrial technology, trade secrets and national core technologies waste the enormous time and money invested in developing the DRAM business, seriously disrupt commercial order and can undermine national competitiveness.

A day earlier, on April 22, the Seoul Central District Court sentenced a former Samsung researcher surnamed Jeon to seven years in prison. He was indicted in custody on charges of leaking 10-nanometer-class DRAM process technology that Samsung had developed at a cost of about 1.6 trillion won, or roughly $1.16 billion, to CXMT. The court found that the leaked technology qualified as a national core technology and that Jeon had conspired in the crime. It said severe punishment was unavoidable because the case caused losses not only to the company but also to South Korea.

Prosecutors believe CXMT recruited engineers for each process stage around key personnel who had worked at Samsung and also obtained technology from SK Hynix during development. Based on that, prosecutors concluded CXMT became the first Chinese company in 2023 to mass-produce 10-nanometer-class DRAM. They estimated the damage, based on lost Samsung revenue, at about 5 trillion won, or roughly $3.62 billion, as of 2024, and said the broader hit to the national economy could eventually reach tens of trillions of won.

Taiwan treats it as economic espionage as South Korea tightens rules

The Federation of Korean Industries said major rival countries treat technology leaks as matters of national security rather than ordinary corporate disputes. Taiwan, which competes directly with South Korea in the global semiconductor market, expanded the definition of espionage under revisions to its National Security Act that took effect in June 2022 to include leaks of economic and industrial technologies, not just military or political secrets. Anyone who leaks a national core technology to China, Hong Kong, Macau or other overseas destinations faces five to 12 years in prison and a fine of NT$5 million to NT$100 million, or about $170,000 to $3.4 million. Attempted offenses are also punishable. Unauthorized use outside Taiwan of trade secrets related to national core technologies can bring prison terms of three to 10 years.

In the US, federal sentencing guidelines allow prison terms to increase sharply by raising the offense level according to the size of the damage. Technology leaks start at offense level 6, which carries zero to 18 months in prison. But the level can rise as high as 36 depending on the damage amount. In that case, prison terms can range from 188 months, or 15 years and eight months, to 405 months, or 33 years and nine months.

In an opinion submitted to the Supreme Court Sentencing Commission, the Federation of Korean Industries said applying US federal standards to South Korea’s average loss per overseas technology leak case, about $230 million, would place the crime at offense level 32. That would allow prison terms of 121 months, or 10 years and one month, to 262 months, or 21 years and 10 months.

South Korea has also revised its system to increase penalties. The Supreme Court Sentencing Commission raised sentencing guidelines for technology-infringement crimes and, since July 2024, has recommended prison terms of up to 18 years for overseas leaks of national core technologies. For leaks of industrial technology inside the country, the maximum recommended sentence was raised to nine years from six. For overseas leaks, it was raised to 15 years from nine. Revisions to the Industrial Technology Protection Act, including an increase in the maximum fine for leaking national core technologies to 6.5 billion won, or about $4.7 million, from 1.5 billion won, have been in force since July 2025.

Even so, industry groups say punishment for overseas leaks of core technologies remains too light. In a public survey on responses to overseas leaks of core technologies released by the Korea Enterprises Federation on July 19, 92.5% of respondents said such leaks have a serious negative effect on the economy. The share calling the impact “very serious” was 62.6%, and the average severity score was 8.6 out of 10.

Some 90.7% said penalties should be strengthened. Only 5.3% said the current level should be maintained, while 3.2% said it should be eased. The biggest concern was weaker national competitiveness as the technology gap with rival countries narrows, cited by 53% of respondents. Threats to national security and supply-chain stability came next at 19.5%, followed by lower sales from declining market share at 16.4%.

Ha Sang-woo, a director at the Korea Enterprises Federation, said most people view overseas leaks of core technologies not simply as a corporate issue but as a threat to national competitiveness and economic security. He said that makes swift policy action necessary.

Hong Min-seong, Hankyung.com reporter mshong@hankyung.com