Summary of Key Points
On July 9th, Changxin Technology (a leading domestic memory chip company) launched its initial public offering (IPO) on the STAR Market. It is expected that the company's market value will reach 2-3 trillion yuan after listing, potentially placing it among the largest companies on the A-share market. The founder, Zhu Yiming, could earn a fortune of over 90 billion yuan from his shares in Changxin and GigaDevice Technology (which he also owns), before any deductions for employee stock incentives. Zhu Yiming returned to China in 2005 to founding GigaDevice Technology and in 2016 initiated the domestic DRAM project (the predecessor of Changxin Technology). In 2018, he devoted himself entirely to Changxin, promising not to receive a salary until the company turned a profit. Seven years later, the company achieved profitability, marking a significant breakthrough from scratch in the production of domestic memory chips.
Detailed Analysis
1. Why is Changxin's IPO such a major event for the domestic chip industry?
Changxin Technology specializes in DRAM chips—high-speed memory used temporarily to store data in phones, computers, and servers (for example, when you watch videos or play games). Previously, the global DRAM market was dominated by three companies: Samsung, Micron, and SK Hynix, with China having almost no domestic production capacity and spending hundreds of billions of yuan annually on imports. Changxin's IPO is significant for several reasons: first, it has broken this monopoly (by launching its own DDR4 chips in 2019), making it the only domestic company capable of mass-producing DRAM; second, its expected market value of 2-3 trillion yuan is equivalent to that of two Ningde Times companies (currently around 1.2 trillion yuan) or half of Moutai's market value (around 2.5 trillion yuan). If it goes public, Changxin will become a giant in the A-share technology sector, marking the official entry of domestic memory chips into the capital market.
2. Zhu Yiming's "second entrepreneurial journey": From scientist to chip industry leader
Zhu Yiming initially aspired to be a scientist (graduated from Tsinghua University's physics department and furthered his studies in the United States). However, realizing China's dependence on imported chips, he returned to China in 2005 to found GigaDevice Technology, starting with the production of NOR Flash chips for smaller markets. In 2016, he collaborated with the Hefei government to launch the "506 Plan" aimed at developing domestic DRAM technology. In 2018, he focused all his efforts on Changxin and made a commitment to forgo a salary until the company was profitable. This decision, which involved risking everything, is considered his "second entrepreneurial journey."
3. What did seven years of no salary achieve for Changxin?
Zhu Yiming's strategy paid off significantly:
- Patent acquisition: He obtained DRAM patents from German company Qimonda (formerly part of Infineon) through a Canadian intermediary, avoiding potential patent infringement lawsuits from global giants.
- Rapid mass production: In 2019, Changxin began producing 12-inch wafers and launched 8GB DDR4 chips, marking the first domestic DRAM product. By 2025, the company turned a profit (revenue: 61.7 billion yuan, profit: 1.87 billion yuan), and in the first quarter of 2026, its performance soared even further (revenue: 50.8 billion yuan, profit: 24.7 billion yuan), indicating both technological and market success.
4. How was Zhu Yiming's fortune calculated to increase by 90 billion yuan?
Zhu Yiming's wealth comes from two companies:
- Changxin Technology: Before the IPO, he held 2.6456% of the company's shares. With an estimated market value of 2-3 trillion yuan, this portion is worth 47.6-71.4 billion yuan.
- GigaDevice Technology: He owns 5.13% of GigaDevice's shares, which, at the current market value of 423.4 billion yuan, is worth 21.7 billion yuan.
- Additionally, he sold some of his GigaDevice shares for 2.29 billion yuan. Before any stock incentive deductions, his total wealth would range from 69-93 billion yuan; after deductions, it would still be around 46.3-58.7 billion yuan—a significant rise that would elevate him from 584th on the Hurun Rich List to within the top 50.
5. How does GigaDevice Technology support Changxin?
GigaDevice and Changxin work closely together as complementary businesses:
- Financial support: GigaDevice has provided several hundred million yuan in strategic investments over the years.
- Business assistance: GigaDevice helps Changxin with chip sales and manufacturing. From 2023 to 2025, related revenues increased from 760 million yuan to 1.18 billion yuan, and it is expected to surge to 5.7 billion yuan in 2026, providing a stable customer base that has helped Changxin quickly enter the market.
This collaboration ensures a balanced distribution of expertise within the memory chip industry, with GigaDevice focusing on NOR Flash and Changxin on DRAM, thus creating a more complete domestic memory supply chain.
In conclusion
Changxin's IPO is not just the listing of a single company but a milestone for the development of domestic memory chips from a position of dependency to independence. Zhu Yiming's dedication and the resulting surge in his wealth reflect both his personal commitment and the market's confidence in the future of domestic chip technology.