The DRAM manufacturer’s record profitability eclipses Samsung and SK Hynix as conventional memory prices surge.
China’s leading DRAM manufacturer, ChangXin Memory Technologies (CXMT), has achieved an unprecedented reversal in the global memory semiconductor sector, recording an 82 per cent operating profit margin for the second quarter to claim the top spot globally for profitability.
According to financial data compiled by the Nikkei Shimbun, CXMT’s profit margin outpaced Micron’s 80 per cent, SK Hynix’s 76 per cent, and the semiconductor division of Samsung Electronics at 70 per cent. Bouncing back from a $188 million loss last year, CXMT generated an operating profit of approximately $12.3 billion, while revenue grew tenfold year-on-year to almost $15 billion.
The earnings surge stems from market shifts driven by the boom in artificial intelligence (AI). As established industry leaders diverted manufacturing capacity toward high-value High Bandwidth Memory (HBM), global supplies of conventional DRAM—such as the DDR5 chips used in PCs and gaming hardware—tightened significantly. The resulting surge in DDR5 spot-market prices positioned CXMT, whose product range concentrates on conventional memory, as the primary beneficiary.
Research firm TrendForce highlighted that DDR5 profitability began outperforming HBM in the first quarter, giving suppliers heavily exposed to standard DRAM a distinct margin advantage. Unlike HBM, which is tied to fixed annual contracts, DDR5 sales respond immediately to spot-price increases.
CXMT is deploying its cash generation—including a free cash flow surplus of roughly $14.3 billion for the first half—to expand production facilities in Hefei and construct a new plant in Shanghai. Domestic demand remains strong, supported by Chinese technology conglomerates such as Alibaba, ByteDance, and Tencent, which are prioritising local chip procurement.
Following its public listing in July, CXMT’s market capitalisation reached approximately $56.4 billion, making it the most valuable listed entity in China.
While Samsung Electronics, SK Hynix, and Micron continue to control roughly 90 per cent of the global DRAM market combined—compared to CXMT’s 7 per cent share—industry analysts warn that Chinese suppliers could disrupt the existing market hierarchy if conventional chip revenues are leveraged to fund aggressive capacity expansions.
