{"id":57908,"date":"2026-07-28T18:21:13","date_gmt":"2026-07-28T18:21:13","guid":{"rendered":"https:\/\/www.europesays.com\/news\/57908\/"},"modified":"2026-07-28T18:21:13","modified_gmt":"2026-07-28T18:21:13","slug":"us-lawmakers-seek-security-probe-into-chinese-chipmaker-cxmt-over-blockbuster-487b-ipo","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/news\/57908\/","title":{"rendered":"US lawmakers seek security probe into Chinese chipmaker CXMT over blockbuster $487B IPO"},"content":{"rendered":"

Top US lawmakers want the Trump administration to launch a formal national security probe into Chinese memory chipmaker <\/a>CXMT on suspicions that Beijing orchestrated the company\u2019s blockbuster IPO to prop up a key military asset, The Post has learned.<\/p>\n

Shares for the China-based chipmaker, also known as ChangXin Memory Technologies, skyrocketed 466% in Shanghai trading on Monday \u2014 raising $8.6 billion and instantly making the firm the most valuable on a China mainland exchange with a market capitalization of nearly $500 billion. <\/p>\n

Beijing\u2019s historic windfall \u2014 which sent shares of US chipmakers tumbling on competition fears on Monday \u2014 is setting off alarm bells in Washington, with a bipartisan group of at least a half-dozen members of Congress expected to send letters to the Trump administration in the coming days, sources close to the situation told The Post. <\/p>\n

US official and lawmakers believe that the CCP may have a role in propping up CXMT\u2019s \u2018blockbuster\u2019 IPO. ZUMAPRESS.com<\/p>\n

One senior US official told The Post there is \u201ca real suspicion that a Chinese Communist Party intervention played a role in this so-called IPO\u201d just six weeks after the Pentagon designated the firm as a Chinese military company.<\/p>\n

\u201cCXMT just got a massive cash infusion that will send shivers down the spines of the US intelligence community,\u201d the source said.<\/p>\n

A seprate senior US government source described the chipmaker as being deeply embedded in \u201cthe Chinese industrial military complex,\u201d calling its rapid market expansion \u201ca ticking time bomb for national security.\u201d<\/p>\n

The Post has also learned that Congressional leaders from the House and Senate, known as the Gang of 8, are demanding an urgent classified briefing to assess the full scope of Beijing\u2019s involvement in the company.<\/p>\n

The Pentagon formally added CXMT to its list of Chinese military companies operating in the U.S. on June 8, but has so far stopped short of blacklisting it altogether.<\/p>\n

A company qualifies for the list it is \u201cengaged in providing commercial services, manufacturing, producing or exporting\u201d and is either \u201cdirectly or indirectly owned, controlled by, or acting as an agent of various Chinese government entities\u201d or \u201cidentified as a \u201cmilitary-civil fusion contributor to the Chinese defense industrial base.\u201d<\/p>\n

The push for a formal investigation would likely be tucked into the National Defense Authorization Act, the must-pass annual legislation that sets the Pentagon\u2019s budget, dictates defense strategy, and serves as Washington\u2019s primary legislative weapon for countering a rising China.<\/p>\n

Monday\u2019s IPO has made the firm the most valuable company on a mainland China exchange, with its market cap standing at just over $487 billion. AP Photo\/Ng Han Guan<\/p>\n

The fear is that Chinese microchips embedded in everyday consumer electronics could act as a Trojan horse, quietly infiltrating American military supply chains and exposing critical defense systems to foreign espionage or cyber sabotage during a crisis, sources said.<\/p>\n

CXMT\u2019s massive stock market debut highlights Beijing\u2019s aggressive push to build a homegrown tech empire<\/a> capable of surviving Western sanctions.<\/p>\n

The Wall Street Journal reported<\/a> earlier this month at Apple has been lobbying the US government to buy chips from the company owing to a shortage amid the ongoing AI boom. <\/p>\n

The IPO instantly made the firm the most valuable company on a mainland exchange, pumping its estimated market value to a staggering 3.3 trillion yuan, or more than $487 billion.<\/p>\n

As China\u2019s top memory chipmaker, CXMT is cashing in on the global artificial intelligence boom. The company specializes in DRAM chip, which are the essential memory components that power everything from consumer smartphones and electric vehicles to AI data centers and advanced military hardware.<\/p>\n

The Pentagon listed CXMT as a Chinese military asset on June 8 but has stopped short of banning the firm outright. AFP via Getty Images<\/p>\n

The IPO arrives at a critical moment in the escalating tech war between Washington and Beijing<\/a>.<\/p>\n

Uncle Sam has spent the last several years trying to choke off China\u2019s technological rise, using strict export controls and diplomatic pressure to block Chinese firms from buying the advanced Western machines needed to build the world\u2019s most cutting-edge microchips.<\/p>\n

In response, the Chinese government has poured state support into national tech champions like CXMT. Beijing\u2019s ultimate goal is complete tech independence: ensuring both its domestic economy and its military machinery can run completely free of US supply chains.<\/p>\n

While CXMT is still trying to catch up to industry heavyweights in South Korea and the US on top-tier tech, it has already carved out a massive global footprint by churning out older \u201clegacy\u201d chips.<\/p>\n

Because these basic, foundational chips face fewer international restrictions, CXMT has rapidly expanded its market share, creating a massive strategic vulnerability for the West as Chinese technology bakes itself into global supply chains.<\/p>\n

The Post has sought comment from the Pentagon and CXMT.<\/p>\n","protected":false},"excerpt":{"rendered":"Top US lawmakers want the Trump administration to launch a formal national security probe into Chinese memory chipmaker…\n","protected":false},"author":2,"featured_media":57909,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[458,112,272,432,8,12867,2833,391,2000,9,67,7],"class_list":["post-57908","post","type-post","status-publish","format-standard","has-post-thumbnail","category-top-stories","tag-artificial-intelligence","tag-business","tag-china","tag-congress","tag-headlines","tag-investigations","tag-ipo","tag-military","tag-national-security","tag-news","tag-politics","tag-top-stories"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@news\/116998995052387795","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/57908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/comments?post=57908"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/57908\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media\/57909"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media?parent=57908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/categories?post=57908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/tags?post=57908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}