# CXMT lifts revenue sixfold to 119.7 billion yuan on memory volume push *China's top memory maker projects a swing to profit on rapid legacy DRAM wafer expansion, driving Samsung and SK hynix to accelerate their shifts toward HBM lines.* **Published:** October 17, 2026 **By:** Wei Zhang **Section:** Semiconductors & AI Hardware — China **Format:** Breaking **Confidence:** high **Source:** https://eastasiabrief.com/semiconductors/cxmt-lifts-revenue-sixfold-119-7-billion-yuan-memory-779 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - CXMT projects Q3 revenue of up to 119.7 billion yuan ($16.8 billion), up over 589% - Samsung and SK hynix fell 7.39% and 10.09% on legacy DRAM supply expansion - First commercial samples of CXMT 4F² server DDR5 face customer trials by Dec. 31 ![A worker in protective cleanroom gear inspects a semiconductor panel beside machinery in a fabrication facility. (AI-generated image)](https://eastasiabrief.com/media/2026-10-17-c02d93f53637.webp) *A worker in protective cleanroom gear inspects a semiconductor panel beside machinery in a fabrication facility. (AI-generated image)* ChangXin Memory Technologies forecast Oct. 17 that its third-quarter revenue surged more than sixfold to 119.7 billion yuan ($16.8 billion), amplifying supply warnings across the global memory chip industry. The projection marked a formal swing to profitability for China's largest DRAM manufacturer. Chairman Zhu Yiming proposed a share buyback of between 1.0 billion and 2.0 billion yuan ($140 million to $280 million) alongside the earnings preview. The state-backed chipmaker estimated net profit for the first nine months reached 131.0 billion to 132.5 billion yuan ($18.4 billion to $18.6 billion). The company captured 9.5% of worldwide DRAM revenue in the second quarter, according to TrendForce data. That volume expansion has concentrated heavily in legacy dynamic random-access memory (DRAM) — standardized computing chips used to hold working code in personal computers and older data centers. The revenue report followed an Oct. 10 announcement by CXMT President Cao Kanyu at a semiconductor conference in Shanghai. Cao said CXMT plans to release a server DDR5 registered memory module using 4F² cell architecture before the end of 2026. The 4F² design shrinks individual memory cell area by 33% by arranging switching transistors vertically rather than horizontally. That structure allows more storage bits per silicon slice without using advanced lithography scanners restricted by export curbs. Market concern over Chinese volume spilling into higher-tier memory sent South Korean chip shares down sharply on Oct. 13. Samsung Electronics dropped 7.39% in Seoul trading, while SK hynix fell 10.09% in its steepest single-day decline of the half. South Korea's two memory makers together control roughly 64% of global DRAM supply. Both producers now face accelerating pressure to vacate older commodity product lines where Chinese state-backed capital has cut pricing power. CXMT is operating its wafer fabrication lines at roughly 95% capacity utilization, according to its 2026 interim report. The company held 238.0 billion yuan ($33.4 billion) in machinery and equipment assets at midyear. The Hefei-based manufacturer booked 52.4 billion yuan ($7.3 billion) in signed equipment and construction commitments. Its capital spending plan targets 350,000 wafer starts per month by the end of 2026, rising toward 550,000 wafers monthly by 2028. CXMT funded that equipment procurement partly through a 57.9 billion yuan ($8.1 billion) initial public offering on the Shanghai Stock Exchange on May 17. The listing priced shares at 8.66 yuan each. For Samsung and SK hynix, the surge in Chinese commodity supply threatens revenue from older DDR4 and low-power mobile memory. SK hynix has moved to lower DDR4 output to roughly 20% of its total DRAM wafer production, down from 40% earlier in the year. Samsung has similarly directed line conversions at its Pyeongtaek fabrication complex away from standard DDR4 toward advanced DDR5 and high-bandwidth memory (HBM). HBM stacks multiple DRAM dies vertically to accelerate data transfer in artificial intelligence accelerators. Premium HBM products deliver operating margins well above 50%, compared to single-digit returns on commoditized DDR4 under Chinese pricing pressure. Samsung and SK hynix hold a combined share exceeding 90% of the worldwide HBM market. Yet legacy DRAM lines continue to generate meaningful cash flow for Korean suppliers when PC and mobile device makers restock inventories. A rapid price collapse in commoditized dies leaves less margin to absorb the steep capital depreciation of leading-edge fabs. Micron Technology also faces direct exposure in standard server and computing memory modules. The Idaho-based chipmaker lost 4% in New York trading on Oct. 12 following CXMT's initial architecture disclosure. CXMT still depends on deep ultraviolet (DUV) lithography systems imported before Western trade measures tightened. Vertical transistor integration offers CXMT a procedural method to increase bit density, but engineering yields on stacked transistors historically drop during high-volume production. The company's earnings release does not state manufacturing yields, defect densities or delivery volumes for its vertical-channel server memory dies. South Korea's Ministry of Trade, Industry and Energy has issued no public evaluation of the Chinese financial filing. Commercial samples of CXMT's server DDR5 module are scheduled for customer evaluation by Dec. 31, ahead of full qualification trials in the first quarter of 2027. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | CXMT legacy DRAM expansion | Samsung and SK hynix reduce DDR4 output toward 20% to avoid price erosion | CXMT ramps monthly wafer capacity toward 350,000 units on domestic demand | Tokyo Electron and equipment suppliers maintain mature-node fab tool backlogs | Server DRAM pricing faces downward pressure as legacy suppliers pivot into HBM | | CXMT legacy DRAM expansion | Samsung and SK hynix reduce DDR4 output toward 20% to avoid price erosion | CXMT ramps monthly wafer capacity toward 350,000 units on domestic demand | Tokyo Electron and equipment suppliers maintain mature-node fab tool backlogs | Server DRAM pricing faces downward pressure as legacy suppliers pivot into HBM | ## In this story - **Companies:** ChangXin Memory Technologies, Samsung Electronics, SK hynix - **Tickers:** 005930.KS, 000660.KS - **Exposed:** Micron Technology - **Policy:** Export Controls - **Impact:** Supply Chain, Pricing, Capex ## Primary sources 1. sse.com.cn 2. zdnet.co.kr 3. hidomin.com 4. mk.co.kr 5. aitimes.com --- Cite as: East Asia Brief, "CXMT lifts revenue sixfold to 119.7 billion yuan on memory volume push," October 17, 2026. https://eastasiabrief.com/semiconductors/cxmt-lifts-revenue-sixfold-119-7-billion-yuan-memory-779