CXMT replaces Tencent as world’s most valuable Chinese company

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 (DRAM) chips, has replaced WeChat creator Tencent as the globe’s most valuable Chinese company. 

According to Bloomberg, as of Thursday (13 August), CXMT 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. 

Reportedly, the chip manufacturer is representative of the direction many Chinese organisations are leaning towards in regards to AI and semiconductor targets. Shares are currently up a further 8pc following CXMT’s initial 467pc surge in debut figures. 

Globally, organisations are seeking to mitigate the chips shortage, outpace their rivals and secure a more reliable supply chain in order to advance their products, tools and technologies. 

This month, AI giant Anthropic confirmed plans to design its own chips in response to the worldwide shortage and increased pressures to develop faster, more advanced AI systems. 

In July, semiconductor and infrastructure manufacturer Broadcom extended the partnership it holds with Apple, in a deal that will see both organisations collaborate on custom-made chips until 2031. Apple is also currently working on AI server chips. 

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