China chipmaker YMTC files for $4.9 billion IPO

Investing.com -- Yangtze Memory Technologies Co. has officially filed for a 33 billion yuan ($4.9 billion) initial public offering on Shanghai’s tech-focused STAR Market. The Shanghai Stock Exchange accepted the listing application on Friday, marking one of the largest domestic semiconductor share sales in recent years as China accelerates efforts to bolster its memory chip supply chain.

Under the draft prospectus, the Wuhan-based chipmaker plans to issue between 1.98 billion and 2.43 billion A-shares, representing 10% to 12% of its total share capital post-offering, with an over-allotment option of up to 15%. Jointly sponsored by CITIC Securities and CSC Financial, the offering will allocate 20.8 billion yuan toward mass production line upgrades and 12.2 billion yuan toward advanced research and development initiatives. The filing underscores a sharp operational surge, with YMTC generating 47.04 billion yuan in revenue and 33.38 billion yuan in net profit during the first quarter of 2026 alone. That momentum follows a profitable turnaround in 2024 and full-year 2025 revenue of 63.19 billion yuan, driven by surging global demand for artificial intelligence infrastructure and high-density data storage.

According to TrendForce data cited in the filing, YMTC ranked third globally and first in China for both NAND Flash sales revenue and shipment volume in the first quarter of 2026. The company’s market growth has been anchored by its proprietary Xtacking architecture, which enabled it to mass-produce 200-plus layer 3D NAND memory and secure cross-licensing agreements with international peers.

Despite rapid top-line expansion, the prospectus highlights substantial capital intensity risks, noting cumulative research expenditure of 15.95 billion yuan and capital outlays of 96.39 billion yuan for long-term assets during the reporting period. These massive outlays have generated 50.95 billion yuan in cumulative depreciation and amortization expenses, leaving operating margins vulnerable to potential drops in unit memory prices.

Management also cautioned that international trade instability and supply chain pressures could impact equipment procurement and overseas expansion efforts. Nevertheless, YMTC aims to leverage the public listing to strengthen its corporate governance, optimize its capital structure, and consolidate its positioning as a world-class memory manufacturer.

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