ChangXin Memory is considering building its second DRAM wafer fab in Beijing and is in discussions for financing support.

BlockBeats News, August 4th - According to Reuters, sources familiar with the matter said that ChangXin Memory is considering building a second 12-inch DRAM wafer fab in Beijing's Yizhuang area. The company is in discussions with the Beijing Economic and Technological Development Zone and several state-owned technology firms for funding. The company is seeking at least 60 million yuan (about $8.9 million) in support, but the negotiations are still in the early stages, and the scale and structure of the financing may be adjusted.

The planned fab will be located at the site of ChangXin Memory's existing Beijing DRAM wafer fab. The project's planned capacity and total investment have not been finalized, but constructing a fab capable of producing advanced DRAM typically requires over $10 billion. Currently, ChangXin Memory operates two 12-inch DRAM wafer fabs in Hefei and one in Beijing, with a monthly capacity of about 100,000 wafers per fab.

ChangXin Memory is also constructing new fabs in Shanghai and Hefei. Once these projects are fully operational, the company's monthly capacity could double to over 600,000 wafers. This expansion comes as demand from AI infrastructure, data centers, and consumer electronics drives the memory chip industry into an upswing. The company completed an $8.6 billion IPO last month, marking the largest semiconductor IPO in mainland China. Since going public, the stock price has risen by 13%.

ChangXin Memory is currently the world's fourth-largest DRAM manufacturer, but Samsung Electronics, SK Hynix, and Micron still collectively hold close to 90% of the global market share in the first quarter. Beijing and Shanghai are also providing funding and other support to ChangXin Memory to capture the economic and strategic benefits of its expansion.