In-Depth Analysis of Changxin Technology's Capacity Utilization: Market Insights into the Domestic DRAM Leader

Based on collected data, I will conduct an in-depth analysis of the market information reflected by changes in Changxin Technology’s capacity utilization from multiple dimensions.

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According to the prospectus and public data, Changxin Technology’s capacity utilization has shown a continuous upward trend [0][1][2]:

Time Period	Capacity Utilization Rate	Month-over-Month Change
2022	85.45%	Baseline Level
2023	87.06%	+1.61pct
2024	92.46%	+5.40pct
H1 2025	94.63%	+2.17pct

The capacity utilization rate increased from 85.45% to 94.63%, a cumulative increase of , showing a strong capacity ramp-up trend.

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The current memory chip market has entered a “super bull market” phase, with prices hitting a new high in nearly 8 years [3][4]. The core drivers of the rising capacity utilization rate are:

• Surge in Demand for AI Servers
  : The DRAM usage of a single AI server is approximately
  8 times
  that of a traditional server
• The compound annual growth rate of global server DRAM shipments from 2024 to 2029 is approximately 24.93%
  [5]
• Strong Demand for HBM (High Bandwidth Memory)
  : Overseas original manufacturers have shifted production capacity to HBM, squeezing the supply of general-purpose DRAM

The rise in capacity utilization directly reflects a

market pattern:

Product Type	Price Increase (July 2025 - January 2026)
DDR5 32GB	Rose from USD 135 to USD 380, an increase of over 230%
DDR4 16Gb	Surged by approximately 1800% within one year [3]
Server DRAM (Q1 2026)	Expected to continue rising by 60%-70% [4]

In 2026, the supply growth rate of DRAM bits is approximately 15%-20%, while the demand growth rate is expected to reach

, resulting in a persistent supply-demand gap.

The increase in Changxin Technology’s capacity utilization reflects the

:

• In Q2 2025, Changxin Technology’s global DRAM market share increased to
  3.97%
  , firmly ranking 4th globally and 1st in China [0][1]
• Its market share is expected to reach
  10%-12%
  by the end of 2025 [5]
• The company has built
  3 12-inch wafer fabs
  in Hefei and Beijing, forming a large-scale manufacturing foundation

The increase in capacity utilization is accompanied by the

:

Core Product	Technical Indicators	Mass Production Time
LPDDR5X	Speed of 10667Mbps, 66% higher than the previous generation	October 2025
DDR5	Speed of 8000Mbps, covering seven major module products	November 2025
DDR4	First self-designed 8Gb product	September 2019

The revenue share of high-end products (LPDDR5, DDR5) has increased rapidly, driving the comprehensive gross profit margin from

in 2022 to in Q3 2025.

The change in capacity utilization confirms the

in the memory industry:

Cycle Phase	Time	Characteristics
Previous Peak	2021	Prices fell 60%-70% from the previous peak
Industry Bottomed Out	Q3 2023	Manufacturers reduced production to stop losses
Cycle Started	October 2024	Samsung suspended production of small-capacity eMMC core components
Prices Surged	H2 2025	DDR5 quotations were suspended, with an increase of 20%-30%
Current Phase	2025-2026	Super bull market, prices hit new highs repeatedly [3][4]

The persistently high capacity utilization rate reflects the

:

• R&D Investment
  : A cumulative
  RMB 18.867 billion
  from 2022 to H1 2025, accounting for
  33.11%
  of cumulative revenue [2]
• R&D Expense Ratio
  : Reached
  23.71%
  in January-June 2025, far exceeding Samsung (11.74%), Micron (10.66%), and SK Hynix (7.39%)
• Patent Reserve
  : As of June 2025, it holds
  5,589
  domestic and overseas patents
• Process Iteration
  : Completed mass production from the 1st to 4th generation process technology platforms

The increase in capacity utilization has brought about a significant

:

• The compound annual growth rate of sales volume of major DRAM products is as high as
  82.34%
• Unit production costs have continued to decrease: 10.16% decrease in 2023, 25.70% decrease in 2024, and a further 17.85% decrease in H1 2025
• The comprehensive gross profit margin exceeded
  30%
  in Q3 2025, and is expected to break through
  40%
  in Q4

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Status	Interpretation
High Utilization Rate	Indicates sufficient orders, full-load operation of production lines, and supply shortage of products
Room for Improvement Remains	Compared with the full production status of overseas giants (close to 100%), Changxin still has demand for capacity expansion
Limited Reserved Space	Existing production lines are basically running at full capacity, and new capacity release takes time [1]

• Rapid Revenue Growth
  : Revenue in January-September 2025 reached
  RMB 32.084 billion
  , with a year-on-year growth of nearly 100%
• Profit Inflection Point Emerges
  : Net profit is expected to reach
  RMB 2-3.5 billion
  in 2025, and non-recurring net profit is expected to reach
  RMB 2.8-3 billion
• Full-Year Profit Expected in 2026
  : If the average product price remains at the September 2025 level, the company is expected to achieve profitability in 2026

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Although the change in capacity utilization is generally positive, the following risks need to be noted:

1. Technological Generation Gap Risk
   : Changxin Technology has not yet reached the most advanced “Alpha” node level and cannot produce HBM products currently [1]
2. Cycle Fluctuation Risk
   : The memory industry has significant cyclical characteristics, and a surge in prices usually lasts for about one year
3. Capacity Expansion by Overseas Giants
   : SK Hynix, Micron, etc. have announced that their capital expenditure in 2026 will be higher than that of last year
4. Equipment Acquisition Risk
   : The acquisition cycle of key equipment (lithography machines) is long and uncertain

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The continuous rise in Changxin Technology’s capacity utilization rate, from

, profoundly reflects seven core changes in the current memory chip market:

1. AI-Driven Explosive Structural Demand
2. Severe Global Imbalance in Memory Chip Supply and Demand
3. Accelerated Domestic Substitution Process
4. Transformation of Product Structure towards High-End Segments
5. The Industry Enters a New Upward Cycle
6. Substantial Breakthroughs in Technological Catch-Up
7. Economies of Scale Initially Emerge

This change not only reflects the improvement of Changxin Technology’s own competitiveness, but also an important signal that China’s semiconductor memory industry is emerging in the global AI wave. As the company advances its STAR Market IPO (planning to raise RMB 29.5 billion), Changxin Technology is expected to further expand its production capacity and optimize its technology with the help of capital, and occupy a more important position in the global memory chip pattern.

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[0] C Finance - “New Vitality in A-Shares: Profit Inflection Point Emerges for Domestic DRAM Leader Changxin Technology” (https://caijing.chinadaily.com.cn/a/202601/08/WS695f50dca310942cc499a8ea.html)

[1] Jiemian News - “From RMB 37 Billion Loss to Profit Reversal: Insights from Changxin Technology’s IPO” (https://www.jiemian.com/article/13874829.html)

[2] Phoenix Net Finance - “Revenue Reached RMB 32.084 Billion in the First Three Quarters of 2025! Changxin Technology’s Prospectus Unveils the Growth Code of Domestic Memory Chips” (https://i.ifeng.com/c/8pXIqoIKum1)

[3] Yicai Global - “Memory Chip Price Surge Sweeps the Globe, Domestic Semiconductor Equipment Faces Historic Opportunities” (https://www.yicai.com/news/102989986.html)

[4] Sina Tech - “Memory Chips at Their Priciest in 8 Years! RMB 300 Billion Changxin Takes on International Giants” (https://news.mydrivers.com/1/1098/1098249.htm)

[5] Dongxing Securities - “2026 Annual Strategy for the Electronics Industry: Tapping into the AI Innovation Cycle” (https://pdf.dfcfw.com/pdf/H301_AP202512171802307018_1.pdf)