Chinese chipmaker Changxin Storage plans to go public in an IPO this year at a valuation of no less than 100 billion yuan, according to Bloomberg, a source familiar with the matter said.
According to the report, Changxin Storage is in the process of selecting underwriters and the size of the IPO has not yet been finalized. A representative from Changxin Storage would not comment on the IPO plans, saying the company is currently focused on R&D work and developing its core business.
Changxin Storage is currently the largest DRAM manufacturer in China, mainly producing DRAM chips, which are used in devices such as personal computers, servers and smartphones. Changxin Storage’s competitors include leading global memory chip manufacturers such as Samsung Electronics, SK Hynix and Micron Technology. Changxin Storage’s IPO will provide it with more capital to expand its production capacity and invest in R&D to close the technology gap with the international giants.
China has been making efforts to develop its local semiconductor industry to reduce its reliance on imported chips. In recent years, China’s need for self-sufficiency in chips has become more pressing due to trade frictions between the US and China and US sanctions against Chinese technology companies such as Huawei, and the listing of Changxin Storage will help boost China’s position and confidence in the storage chip sector.