Hong Kong, June 6 : Chinese memory chipmakers are emerging as a growing challenge to global semiconductor leaders as they move ahead with public listings and rapidly expand their market presence amid the artificial intelligence (AI) boom, according to Jefferies' latest GREED & fear report.
The report highlighted that China's leading NAND flash maker, Yangtze Memory Technologies Corp (YMTC), and top DRAM producer, ChangXin Memory Technologies (CXMT), are advancing their IPO plans at a time when demand for AI-related memory chips is surging globally.
Jefferies noted that YMTC has already begun its mainland A-share listing process and is expected to submit its formal application as early as mid-June.
The report said YMTC's revenue "exceeded Rmb20bn in the first quarter, more than doubling from a year earlier," while its NAND flash chip output accounted for more than 10 per cent of the global market.
According to the report, YMTC's market share reached 13 per cent in the first quarter of 2026, putting it on par with some of the world's leading NAND flash players.
On the DRAM side, Jefferies pointed to the rapid rise of CXMT, whose IPO application has already been approved by the Shanghai Stock Exchange's STAR Market.
"The company plans to raise Rmb29.5bn (US$4.36bn), which will be the second-largest IPO in the STAR Market after China foundry Semiconductor Manufacturing International Corporation (SMIC) in July 2020," the report said.
Jefferies noted that CXMT's growth reflects the strong demand environment created by AI-related spending across the semiconductor industry.
"The company, according to the prospectus, expects revenue in the first half of this year to reach Rmb110-120bn marking growth of over 600% YoY," the report said.
The brokerage added that first-half net profit is expected to reach between Rmb66 billion and Rmb75 billion, compared with a net loss in the same period last year.
Jefferies said the planned listings are strategically timed to benefit from investor enthusiasm around AI infrastructure and semiconductor spending.
"Meanwhile, the two pending Chinese IPOs are clearly timed to take advantage of the AI capex boom to raise capital while semiconductor stocks are still hot. And that capital will doubtless be used to increase capacity," the report said.
The report argued that the significance of these listings extends beyond fundraising and could reshape investor perceptions of China's role in the global semiconductor industry.
"As for the impact of these listings from the standpoint of general investor sentiment, they will send the general message that the Chinese are coming in both the NAND flash and DRAM segments," Jefferies said.
The brokerage added that investors should not underestimate China's ability to gain market share, citing developments seen in sectors such as electric vehicles and battery storage.
Supporting that view, the report highlighted the strong growth in China's semiconductor exports. "Exports of electronic integrated circuits rose by 99.6% YoY to US$31.1bn in April and were up 83.7% YoY to US$103.5bn in the first four months of 2026," it said.
Jefferies also noted that China's AI hardware ecosystem has benefited from US restrictions on advanced semiconductor exports, prompting Beijing to accelerate efforts toward self-reliance.
"The hottest area of the China stock market of late has been the China AI hardware supply chain where the opportunity to grow has been created by the vacuum left by the US restriction on sales of advanced semiconductors to China," the report said.
According to Jefferies, China's AI capital expenditure remains significantly below that of the United States, suggesting room for further expansion as the country's semiconductor industry continues to scale up.