China’s CXMT Swings to Profit After Memory Chip Prices Surge

Chinese chipmaker CXMT Corp. reported a surge in preliminary profit and sales during the first nine months of the year after global demand for memory sent prices of the components soaring.

The domestic memory-chip leader said that preliminary net income will amount to 131 billion yuan to 132.5 billion yuan ($19.6 billion to $19.8 billion) in the period, compared with a net loss of 5.3 billion yuan in the first nine months of last year. Preliminary revenue is expected to reach 265 billion yuan to 270 billion yuan, versus 32.1 billion yuan last year.

The broader memory-chip field has seen a boom in demand that has sent sales and stock prices skyrocketing. The artificial intelligence build-out has contributed to shortages across the industry, driving up prices of memory components.

CXMT also has steadily expanded capacity and advanced product research and development, according to a Shanghai Stock Exchange filing. The company has boosted output per wafer and is using capacity more efficiently. In addition, Chairman Zhu Yiming proposed that the company buy back 1 billion yuan to 2 billion yuan of shares.

Read More: China’s CXMT Claims Memory Advances Ahead of Samsung, Hynix

CXMT recently said it has achieved a breakthrough in chip technology that rivals like Samsung Electronics Co. had pursued for years. The company plans to roll out a new type of semiconductor with increased memory density thanks to its self-developed new architecture.