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Changxin Memory is considering building a second DRAM wafer factory in Beijing and is in talks for financing support

According to Reuters, informed sources say that Changxin Storage is considering building a second 12-inch DRAM wafer fab in Beijing's Yizhuang and is negotiating financing with the Beijing Economic and Technological Development Zone and several state-owned technology companies. The company is seeking at least 60 million yuan (approximately 8.9 million USD) in support, but negotiations are still in the early stages, and the scale and structure of the financing may be adjusted.The proposed factory will be located at the site of Changxin Storage's existing DRAM wafer fab in Beijing. The planned production capacity and total investment for the project have not yet been determined, while building a fab capable of producing advanced DRAM typically requires over 10 billion USD. Currently, Changxin Storage operates two 12-inch DRAM wafer fabs in Hefei and one in Beijing, each with a monthly production capacity of about 100,000 wafers. Changxin Storage is also building new factories in Shanghai and Hefei, and once the related projects are fully operational, the company's monthly production capacity could double to over 600,000 wafers.This expansion comes as demand for storage chips is driven by AI infrastructure, data centers, and consumer electronics entering an upward cycle. The company completed an 8.6 billion USD IPO last month, marking the largest fundraising for a semiconductor company listed in mainland China, and its stock price has risen by 13% since going public. Changxin Storage is currently the fourth largest DRAM manufacturer in the world, but Samsung Electronics, SK Hynix, and Micron together still account for nearly 90% of the global market share in the first quarter. Beijing and Shanghai are also providing funding and other support to Changxin Storage to gain economic and strategic benefits from its expansion.

Changxin's long position funding fee is expected to yield an annualized return of 2130%, with whales able to net a profit of 740,000 USD in a single day

According to monitoring by Hyperinsight, the current hourly funding rate for Changxin has dropped to -0.2430%. A negative rate means that shorts pay longs; based on the current rate, the simple annualized return is approximately 2129%.Calculating with a position of $10,000, shorts need to pay about $24.3 per hour, while longs receive an equivalent income; if the rate is maintained for 24 hours, the corresponding funding fee is about $583.3.The largest long position starting with 0x9a8 is the main beneficiary of this round of negative rates. Records show that since the morning of July 15, it has completed 183 funding fee settlements for CXMT, with a cumulative net income of about $991,400, achieving a return rate of about 45.9% on the initial capital.This whale currently holds a leveraged long position of 1,633,200 CXMT at 5 times, with a position value of about $12,742,000 and an average entry price of $6.6156. CXMT is currently priced at $7.80, with an unrealized profit of about $1,938,000 (89.7%), and the liquidation price is only $0.507.Based on the current position and a static rate of -0.2430%, this whale can earn about $31,000 in funding fees in the next hour; if maintained for 24 hours, this corresponds to about $743,000.This whale currently still has 7 buy orders not labeled as "only reducing positions" between $6.01 and $6.41, planning to continue buying 98,000 CXMT, with a nominal amount of about $609,000, and has not chosen to cash out the existing long position.
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