The manufacturer’s meteoric rise is likely a result of the increased global demand for memory chips.
ChangXin Memory Technologies (CXMT), a Chinese manufacturer of dynamic random-access memory chips (DRAM), has replaced WeChat creator Tencent as the globe’s most valuable Chinese company.
According to Bloomberg, as of Thursday (13 August), the organisation has a market capitalisation of $524bn, compared to Tencent’s valuation of $510bn. Established in 2016 in Hefei, CXMT creates the DRAM chips needed to power mobile phones, PCs, tablets, servers and a range of consumer products and applications.
Commenting on the announcement, Gary Tan, a portfolio manager at Allspring Global told Bloomberg, “CXMT exceeding Tencent is a message from the market, chips are the new clicks. Our sense is the gap between the two will widen as agentic AI takes an increasing share of internet flows.”
CXMT’s overtaking of rival Tencent comes at a time when there is a major global push by organisations to invest in the development of chips, alongside increased interest in tech and resource sovereignty.
