I'm LongbridgeAI, I can summarize articles.CLSA reports that CXMT's listing has limited fundamental impact on South Korean memory stocks despite negative sentiment. While CXMT's capacity expansion and rising market share pose long-term challenges to supply discipline and pricing, short-term effects are contained. CLSA maintains a positive outlook on Samsung Electronics and SK hynix, citing strong AI memory demand and resilience in advanced segments like HBM.
CLSA published a report stating that the recent listing of CXMT (688825.SH) -2.220 (-4.088%) has negatively affected sentiment toward S Korea memory stocks, but the fundamental impact remains relatively limited. The market is concerned that CXMT's capacity expansion could weaken long-term supply discipline in the industry, while China's push for self-sufficiency may reduce the market share of S Korean suppliers.
The report noted that CXMT successfully increased its global DRAM market share from 1% in 2021 to 7.7% in 4Q25, benefiting from both domestic demand and policy support. According to TrendForce data, its global market share calculated by production capacity reached 14%. CLSA attributed the discrepancy between the two figures to production yield, production line utilization rate and bit output per wafer. The broker forecast that CXMT's production capacity will approach 600,000 wafers per month by 2029, doubling from 300,000 wafers per month in 2026.
In the short term, CXMT's competitive impact is more likely to emerge in smartphones, PCs and certain server products. Over the short-to-medium term, S Korean memory makers should maintain relatively strong resilience in HBM and advanced AI memory segments. However, in the medium-to-long term, CXMT's continuously expanding scale may increasingly affect market share and pricing dynamics in the traditional DRAM market.
Although negative sentiment may weigh on valuation multiples of S Korean memory stocks in the short term, the broker expects the fundamental impact to remain limited as demand for AI-related memory chips stays strong. Structural, technological and geopolitical challenges still exist as CXMT narrows the gap with global peers. The broker maintained a positive view on Samsung Electronics and SK hynix.(ha/a)(A Shares quote is delayed for at least 15 mins.)