Chinese chipmaker CXMT faces allegations of executing a strategic plan known as Project Hefei to gain a significant share of the global DRAM market. According to court documents, the plan involved the theft of Samsung’s proprietary production recipes, which consist of 620 technical steps, alongside the recruitment of former Samsung engineers.
The project allegedly began in August 2016, shortly after CXMT was founded in June 2016 with government funding of approximately $1.9 billion. Prosecutors claim the company aimed to access Samsung’s Process Recipe Plan by September 2016, complete R&D by July 2017, and initiate production by August 2018. South Korean authorities estimate the damages to Samsung from these activities at approximately $29.5 billion.
CXMT’s global DRAM market share grew from about 4% in the second quarter of 2025 to approximately 10% in the second quarter of 2026. During this period, the company expanded its capacity to three 12-inch wafer fabrication facilities. By the end of 2026, CXMT aims to reach an annual production volume of 350,000 wafers, nearing the output levels of Micron.
In July 2026, CXMT conducted an IPO on the Shanghai STAR Market, raising $8.6 billion with shares surging 466%. The company reported a 716% year-over-year revenue increase in the second quarter of 2026. CXMT plans to allocate 70% of the IPO proceeds to further DRAM production expansion and is currently developing a second facility in Beijing to increase annual capacity to over 600,000 wafers.