Reuters Says China’s CXMT Weighs New 12-Inch Memory Chip Plant in Beijing

China’s largest memory-chip maker, ChangXin Memory Technologies, or CXMT, is considering building a new memory semiconductor plant in Beijing, Reuters reported on August 3, citing multiple sources.

The move is aimed at meeting growing global demand for memory chips.

Reuters reported that CXMT is weighing a new 12-inch memory chip fab in Yizhuang, in southeastern Beijing.

The company is discussing financing with the Beijing Economic-Technological Development Area. Some state-owned companies have also expressed interest in joining the investment, the report said.

The talks are still at an early stage, and the investment size and financing structure could change.

The exact production capacity and investment amount for the planned Beijing plant have not been disclosed.

The industry generally estimates that building one advanced memory fab costs more than $10 billion.

CXMT is also pursuing new plants in Hefei, Anhui province, where it is headquartered, and in Shanghai.

According to the sources, CXMT currently operates three plants, including in Hefei, each with monthly capacity of 100,000 wafers.

If all the planned new plants begin operations, the company’s monthly production capacity would rise to about 600,000 wafers, double the current level.

Separately, CXMT listed on the Shanghai Stock Exchange’s STAR Market on July 27.

Its market capitalization reached 328 billion yuan, or about $45.7 billion, on the first trading day, making it the most valuable company on mainland Chinese stock markets.

Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com