China’s answer to Micron just went live for trading. Memory maker Changxin Technology Group, known as ticker CXMT, IPO’d today and shares jumped more than 450% in their first day of trading. As foreign investors, it’s near impossible to invest directly in Chinese markets so almost none of us will be buying shares anytime soon, but there’s some interesting notes in their prospectus that are worth looking at.

CXMT’s IPO comes at a time when computer memory chips are arguably one of the most important pieces of tech in the world right now. The AI boom has put a strain on the world’s memory cards as AI companies are buying insane amounts to train their AI models and build datacenters in the US and internationally. But, other tech from drones to phones still need these chips.

Looking into the IPO filings, CXMT holds an almost 8% share of the world’s RAM market. Which is an insane amount for a growing company. 

Looking at this from a geopolitical lens, will we see the benefit of CXMT’s growth in the US? As of now, maybe. The company is not on the US’s “Entity List” like many other Chinese companies and several large companies, like Apple are begging the Trump Administration to allow US companies to buy CXMT memory chips. That said, others are calling this a national security issue and calling for a full ban of CXMT chips.   

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