China's CXMT Grows on Government Support

Domestic companies such as Huawei and Tencent set aside market logic and bought CXMT's supply at high prices under a domestic-first principle, which became the foundation for its growth.

Even when yields fell and losses arose, the government covered the full amount of those losses with subsidies. Major domestic firms including Huawei and Tencent also bought CXMT's output preferentially at prices far above the market rate, even though its performance was somewhat lower.

CXMT is building a supply chain that does not operate under the usual market logic of price setting.

For example, when Huawei asked CXMT to lower memory prices, CXMT instead offered a higher price, and Huawei bought the product anyway.

This domestic-first supply principle has become a powerful competitive weapon for CXMT, keeping Korean companies from seeing it as a simple latecomer.