Chinese firm Cxmt’s record-breaking stock market debut counts as a victory in the AI war

If the Chinese were aiming to impress the Americans with a spectacular IPO, they have certainly succeeded. CXMT, a manufacturer of DRAM memory chips essential for powering next-generation artificial intelligence platforms, made its debut on the Shanghai Stock Exchange on Monday morning with a 500 per cent rise, propelling the company towards a market capitalisation of around $540 billion. A valuation that now exceeds that of the Chinese mega-bank ICBC.

In terms of scale and investor interest, Cxmt’s IPO has few precedents in the history of Asian financial markets and, as anticipated by Il Foglio, takes on a significance that goes beyond finance: it marks a new chapter in the technological rivalry between China and the United States. Beijing is, in fact, increasingly relying on domestic production to reduce its dependence on foreign sources in the race for artificial intelligence, and the capital raised through the listing will enable ChangXin Memory Technologies to expand its production capacity and strengthen its global presence.

Cxmt is already one of the world’s leading manufacturers of DRAM memory, essential components for the advanced computing systems used by major technology companies and data centre operators. It is no coincidence that the Pentagon recently decided to remove the company from the blacklist on which it had been placed. Global demand for memory chips has, in fact, skyrocketed with the growth of AI: over the past year, prices have risen by 200 per cent, fuelling a rush to secure supplies and driving up the value of the few manufacturers capable of meeting market demand.

This has given rise to a veritable ‘memory for AI’ market, characterised by demand exceeding expectations and set to provide further support for the share prices of the leading players. Cxmt’s record-breaking debut also reinforces the Xi Jinping government’s narrative regarding China’s ability to achieve technological self-sufficiency and compete with the United States in the strategic sectors of the future.

The ball is now in Washington’s court. The United States, where even major companies such as Apple purchase chips manufactured by Cxmt, will have to demonstrate that it can maintain its lead in the race for semiconductors. A technological war in which Europe, once again, risks being more of a spectator than a key player.