Flush with its cash from a record-setting IPO, China's CXMT is considering building a second memory chip plant in Beijing. CXMT is regularly discussed in the media as a Chinese chip firm that might be able to compete on the global stage due to the ongoing turmoil in the memory chip industry. Reports have suggested that the firm is on its way to be able to produce the latest LPDDR6 and capitalize on Micron and Samsung's focus on high bandwidth memory (HBM) for the AI data center infrastructure buildout.

CXMT has been in the news over the past couple of months due to reports that have suggested that Apple is interested in buying the firm's memory chips. The global memory shortage has affected the Cupertino, California-based consumer electronics giant's supply chain as it has been unable to secure supplies without having to face price hikes.

Yet, other reports have suggested that CXMT's ability to target the global memory market is limited, as the firm has to primarily meet the needs of China's domestic memory market. US sanctions on China, which limit its ability to procure high-end chips and manufacturing equipment, have come at a time when Beijing is aiming towards semiconductor self-sufficiency despite the capital and knowledge-intensive nature of the industry.

Now, according to a fresh report from Reuters, CXMT is interested in building a memory fab in Beijing. The details suggest that the firm was exploring the move before its IPO, and it is in the early stages of the talks. The sources add that CXMT is also seeking support from the Beijing Economic-Technological Development Area. The US restrictions and the booming demand for local compute infrastructure have incentivized China's government to prioritize firms such as Huawei with the hopes of establishing a domestic semiconductor production ecosystem.

Today's report follows one that surfaced last week and claimed that CXMT was making progress with its LPDDR6 memory chips. These are among the latest in the world, and the sources suggested that the Chinese firm was eager to target the gap left by Samsung and Micron. The two are focused on making high-bandwidth memory (HBM) chips, and CXMT hopes to utilize the gap they've left to establish itself as a player in the global memory market. The sector is currently dominated by the two firms plus Korea's SK hynix, which control the vast majority of the market share.

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