Analysis Report

According to the latest prospectus disclosure, Changxin Technology, as China’s “largest-scale, most technologically advanced, and most comprehensively laid-out” integrated DRAM R&D, design, and manufacturing enterprise, has completed its STAR Market IPO application and plans to raise 29.5 billion yuan [1][2]. The company has adopted a “generation-skipping R&D” strategy, achieving mass production breakthroughs from the 1st to the 4th generation of process technology platforms, and its core products and process technologies have reached the international advanced level [1].

By 2025, Changxin Technology will have risen to become the world’s fourth-largest DRAM manufacturer in terms of production capacity and shipment volume. According to Omdia data, by the end of 2025, the company’s market share in terms of bit shipment volume will increase from 6% in Q1 to 8%, and its market share in DDR5/LPDDR5 is expected to rise from 1% to 7% and 9% respectively [2]. This rapid rise has laid a solid foundation for subsequent HBM technology breakthroughs.

The current HBM (High Bandwidth Memory) market presents a three-way competitive landscape: SK Hynix dominates with its HBM3 and HBM3e products, holding a market share of over 50%; Samsung Electronics and Micron follow closely, with the three collectively controlling more than 95% of the global HBM market share [1]. This pattern is the result of more than a decade of technological accumulation and patent layout.

HBM technology involves the following key patent areas:

• TSV (Through Silicon Via) technology
  : Core process for vertical chip interconnection
• Micro-bumping technology
  : Enables high-precision connection between chips
• Stacking packaging technology
  : 3D integration of multi-layer DRAM chips
• Memory controller interface technology
  : High-speed data transmission protocol and signal integrity

International giants have built a huge patent network through cross-licensing agreements, forming a high technical moat [1].

Changxin Technology continues to maintain high-intensity R&D investment. From 2022 to the first half of 2025, cumulative R&D investment reached 18.867 billion yuan, accounting for 33.11% of cumulative operating revenue [2]. In the first half of 2025, the R&D expense ratio reached as high as 23.71%, significantly exceeding industry giants such as Samsung Electronics (11.74%), SK Hynix (7.39%), and Micron (10.66%) [2].

The company has 4,653 R&D personnel, accounting for more than 30% of the total employees, forming a strong technical research capability. Through continuous investment in TSV processes, bonding technology, heat dissipation solutions, and other areas, it gradually accumulates independent intellectual property rights.

Given the stringent patent barriers of traditional HBM, Changxin Technology can adopt the following differentiated strategies:

• Innovative stacking architecture
  : Develop new 3D stacking structures to avoid direct conflicts with existing patents
• Advanced packaging innovation
  : Explore emerging technology paths such as hybrid bonding
• Material innovation
  : Develop new dielectric materials and heat dissipation solutions

Changxin Technology has established in-depth cooperation with core industrial chain customers such as Alibaba Cloud, ByteDance, Tencent, Lenovo, and Xiaomi [1]. Through collaborative development with domestic AI chip companies (such as HiSilicon and Cambricon), it can form a “memory + computing chip” system-level solution to jointly address international patent barriers.

• Active patent application
  : Establish its own patent portfolio in HBM-related technical fields
• Patent cross-licensing negotiations
  : Conduct cross-licensing negotiations with giants at the appropriate time
• Patent avoidance design
  : Bypass core patent restricted areas through technical solution optimization

The acceptance of the STAR Market IPO will provide sufficient capital support for Changxin Technology. Among the funds raised this time, 9 billion yuan will be used for the “Dynamic Random Access Memory Forward-looking Technology Research and Development Project” [2]. At the same time, the support from heavyweight shareholders such as the National Integrated Circuit Industry Investment Fund Phase II, Alibaba, Tencent, and Xiaomi provides policy and capital guarantees for technical research.

• Technology generation gap
  : There is still a 1-2 generation technology gap with the international leading level
• Equipment restrictions
  : Access to advanced process equipment may be restricted
• Patent litigation risk
  : May face patent litigation from international giants after entering the market
• Yield ramp-up
  : HBM product yield improvement requires a long cycle

Changxin Technology has made significant breakthroughs in the DDR5/LPDDR5 field, laying a good foundation for HBM technology research. Facing the patent barriers built by international giants, the company needs to adhere to the strategy of independent R&D as the main focus and differentiated innovation as the supplement, and gradually break through technical blockade through high-intensity R&D investment, industrial chain collaboration, and patent layout.

With the substantial enhancement of capital strength after the IPO completion and the rapid growth of domestic AI industry’s demand for high-bandwidth memory, Changxin Technology is expected to achieve key breakthroughs in HBM technology within the next 3-5 years, gradually breaking the market monopoly of international giants, and making important contributions to the independent controllability of China’s memory chip industry.

[1] Shanghai Stock Exchange - Changxin Technology Group Co., Ltd. Response to the Review Inquiry Letter for the Initial Public Offering of Shares and Listing on the STAR Market (https://static.sse.com.cn/stock/disclosure/announcement/c/202512/002170_20251230_HQ08.pdf)

[2] Wall Street News - China’s First Memory Chip Stock is Here! Changxin Technology’s STAR Market IPO Accepted (https://news.qq.com/rain/a/20251231A00S6M00)

[3] Sina Finance - Changxin Technology Announces IPO Plan: LP/DDR5 Has Reached International Advanced Level (https://finance.sina.com.cn/tech/roll/2025-12-31/doc-inhervys6704388.shtml)