CXMT Allocates US$5.2 Billion to Expand DRAM Capacity, Prioritizing Domestic Equipment Suppliers

China's leading memory-chip producer CXMT has launched a major capacity expansion backed by a US$5.2 billion spending plan that will heavily favor local equipment suppliers, according to a source cited by the South China Morning Post. The company, listed on the Shanghai Stock Exchange's Star Market, disclosed in a Monday stock filing that it will direct 24.1 billion yuan toward a new technology research and development project and a further 10.8 billion yuan to the second phase of a wafer testing base. Roughly 22.4 billion yuan — about 93 per cent of the R&D project's budget — is earmarked for equipment purchases, underscoring the capital-intensive nature of the dynamic random-access memory (DRAM) producer's move into more advanced products. The source said CXMT has set an "aggressive" target for domestic chipmaking equipment as it begins the massive output increase. The filing did not specify a timeline for the projects or name individual suppliers. The plan highlights the scale of investment required in DRAM manufacturing and China's push to build out its domestic semiconductor supply chain.