CXMT Profit Reaches 54.4 Billion Yuan as Revenue Jumps 613.2% in Third Quarter
Key Facts
ChangXin Memory Technologies, known as CXMT, posted net profit attributable to shareholders of 54.4 billion yuan in the three months ended September 30, 2026, after recording a loss in the same period a year earlier, according to a Reuters report. Revenue reached 118.71 billion yuan in July and September, up 613.2% year on year and 19.3% from the previous quarter. The figures distinguish sales growth from the shift to profitability: the first reflects the scale of operations, while the second shows net returns to shareholders. The company said strong demand linked to artificial intelligence had pushed up prices for the memory chips it produces. The results put China’s largest DRAM supplier by revenue at the center of the race to meet rising memory demand.
CXMT’s growth comes as global memory makers have shifted their priorities toward higher-value products. SK Hynix, Samsung Electronics and Micron Technology have given increasing attention to high-bandwidth memory, or HBM, used in AI applications, the Reuters report said. That shift gives CXMT room to expand sales of conventional memory chips as it also seeks to enter the HBM market. Samsung reported record consolidated revenue of 195.3 trillion won and operating profit of 107.4 trillion won in the third quarter of 2026. Revenue rose 14% from the previous quarter, and the company said its memory business posted record quarterly revenue and operating profit.
Samsung forecast that AI-driven memory demand growth would outpace supply in 2027 compared with 2026. SK Hynix said it expected demand to continue exceeding supply through 2030, citing supply that was not keeping pace with market growth, increasing difficulty in advanced manufacturing technologies and lengthy facility construction times. The South Korean company said long-term supply agreements signed with 14 major customers covered more than 50% of its production capacity for 2027 and 2028. These commitments reflect institutional demand extending beyond the quarterly results cycle and give the company greater visibility into part of its future output. Against this backdrop, CXMT’s entry into HBM products will test its ability to compete in a sector where leading companies expect supply constraints to persist.
CXMT plans to begin limited production of HBM3E chips within two months of the Reuters report dated October 30, 2026, according to sources cited by the report. But the company’s manufacturing yield is between 20% and 30%, compared with about 70% at SK Hynix, highlighting an efficiency gap that could limit the number of saleable chips when limited production begins. The difference means that announcing the start of production is not equivalent to reaching the South Korean competitor’s commercial production levels. The comparison also shows that expanding in the advanced memory market requires manufacturing improvements as well as demand. With HBM demand central to industry investment, CXMT’s ability to turn its plan into scalable supply will depend on raising its manufacturing yield.
In trading, CXMT shares closed down 2.5% on Friday, October 30, and had fallen 32% from their August peak by that date. The Reuters report linked the decline to investor concerns about the sustainability of the AI investment boom. In the stock table accompanying the Reuters page, Micron shares were listed at $934.27 at the October 29 close, but the report did not establish that CXMT’s results caused a move in the U.S. company’s stock. Micron’s performance that day was also separate from CXMT’s decline, for which a distinct daily percentage was reported. China’s manufacturing purchasing managers’ index reading was 50.1% in September, up 0.3 percentage points from the previous month and entering expansion territory. According to the National Bureau of Statistics of China’s calendar, the monthly index report for October was scheduled for publication on October 31 at 9:30 local time, with the caveat that the date was preliminary and subject to change.