ChangXin Memory Becomes China's Most Valuable Company
ChangXin Memory Technologies became China's most valuable company after shares surged on reports that Apple Inc. may use its memory chips.
Shares of ChangXin Memory Technologies surged 12% to a record 61.80 yuan on Monday, making the DRAM manufacturer the most valuable company in China. The rally pushed the company's market capitalization to 4.13 trillion yuan following reports that Apple Inc. is considering using the firm's memory chips to mitigate a global memory shortage.
UBS analyst Jason Milao attributed the growth to Apple sourcing optionality. However, the valuation spike coincided with warnings from the United States government. U.S. Commerce Secretary Howard Lutnick stated that the Trump administration does not recommend that Apple use the company as a chip substitute.
Lutnick noted that the Pentagon has blacklisted the manufacturer over alleged ties to the People's Liberation Army, creating a conflict between Apple's supply chain needs and U.S. security restrictions.
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