Changxin Memory Technologies is considering building a second DRAM wafer fab in Beijing and is currently in talks to secure financing support.

According to Reuters, people familiar with the matter said that Changxin Memory Technologies is considering building a second 12-inch DRAM fab in Beijing’s Yizhuang district, and is in talks with the Beijing Economic-Technological Development Area (BDA) and several state-owned tech firms for financing. The company is seeking at least 60 million yuan (about $8.9 million) in support, but negotiations are still in the early stages, and the financing scale and structure may be adjusted. The planned fab will be located on the site of Changxin’s existing DRAM fab in Beijing. The project’s planned production capacity and total investment have not been finalized, while building a fab capable of manufacturing advanced DRAM typically requires more than $10 billion. Currently, Changxin operates two 12-inch DRAM fabs in Hefei and one in Beijing, each with a monthly production capacity of about 100,000 wafers. The company is also constructing new fabs in Shanghai and Hefei; once these projects are fully operational, its monthly production capacity could double to over 600,000 wafers. The expansion comes as demand for storage chips enters an upward cycle, driven by AI infrastructure, data centers and consumer electronics. Last month, Changxin completed an $8.6 billion IPO, the largest semiconductor listing on the Chinese mainland, and its share price has risen 13% since the debut. Changxin is currently the world’s fourth-largest DRAM manufacturer, but Samsung Electronics, SK Hynix and Micron still held a combined nearly 90% of the global market share in the first quarter. Beijing and Shanghai are also providing financing and other support to Changxin to capture the economic and strategic benefits brought by its expansion.