Chinese memory manufacturer YMTC goes public, fueled by a surge in interest in AI chips

Artificial intelligence is accelerating the memory market: how Chinese companies are preparing for IPOs

The demand for memory, driven by the rapid growth of artificial intelligence systems, has surged sharply, leading to shortages and price increases. This has created favorable conditions for boosting profits and revenue for memory manufacturers. In such a scenario, companies that have not yet gone public should consider the possibility of an initial public offering.

China’s YMTC has already begun preparing for an IPO, following the example of the country’s largest DRAM producer, CXMT. Although YMTC specializes in NAND solid-state memory, both companies are showing interest in HBM (High Bandwidth Memory) production technologies. Bloomberg reports that preparation for the first public share offering began with support from local brokers Citic Securities and CSC Financial.

CXMT officially announced plans to go public on the Shanghai Stock Exchange at the beginning of this year. The IPO is expected to raise about $4.2 billion. YMTC has no concrete figures yet, but early steps toward a public listing are already visible.

In the “AI‑paper” environment, memory manufacturers’ assets become especially attractive to investors, and an IPO is an effective way to raise the necessary funds for further development. In the first quarter, CXMT’s revenue grew eightfold compared with last year, and profit for the current half-year is projected to increase by more than 2,200 % according to the company’s own forecast.

YMTC has been under U.S. sanctions since 2022, which is why Apple has not used its memory in its devices. However, the memory shortage forces Western PC manufacturers to increasingly consider Chinese supplies as an alternative.