CXMT's Q2 2026 EBIT Margin Reaches 82%, Topping SK hynix and Samsung's Chip Unit

ChangXin Memory Technologies achieved an EBIT margin of 82% in the second quarter of 2026, exceeding major memory chipmakers including SK hynix, Micron and Samsung Electronics' semiconductor business to become the memory chip company with the highest margin globally in the quarter. In the same period, SK hynix had an EBIT margin of 76%, while Samsung Electronics' semiconductor business recorded 70%. ChangXin Memory Technologies' revenue rose about tenfold from the same period in 2025, the fastest growth among six companies: ChangXin Memory Technologies, Samsung, SK hynix, Micron, Kioxia and SanDisk. In terms of absolute profit, ChangXin Memory Technologies remained below companies such as SK hynix and Micron. The lead was mainly in its single-quarter EBIT margin and does not mean its overall scale has surpassed the world's leading memory chipmakers.

ChangXin Memory Technologies mainly produces DRAM chips, including DDR5, used in data centers, personal computers and gaming consoles, with customers including Chinese technology companies such as Alibaba, ByteDance and Tencent. As Samsung, SK hynix and Micron channel more resources into high-bandwidth memory for AI servers, supply of ordinary DRAM has tightened and DDR5 prices have risen sharply, benefiting ChangXin Memory Technologies. HBM is usually supplied under annual agreements between memory chipmakers and large cloud service providers, leaving short-term prices less exposed to market fluctuations. DDR5 prices are more closely tied to supply and demand in the spot market, so profitability has improved faster in the current price upcycle. Since the first quarter of 2026, HBM has been less profitable than DDR5.

ChangXin Memory Technologies is expanding capacity. The company is using proceeds from its initial public offering in July 2026 to continue raising capacity at its Hefei plant, and it plans to build a new factory in Shanghai. ChangXin Memory Technologies has become China's most valuable listed company, with a market value nearly three times that of Japan's Kioxia. Its forward price-to-earnings ratio is close to 20 times, while Samsung, SK hynix and Kioxia are in the single digits. Meanwhile, the parent company of Yangtze Memory Technologies has applied to list in Shanghai. Both ChangXin Memory Technologies and Yangtze Memory Technologies are benefiting from a global shortage of memory chips and are accelerating capacity expansion.