--- title: "GigaDevice votes today on a 37.5% bigger DRAM wafer bill from CXMT, its chairman's other company" description: "At an extraordinary general meeting in Beijing this afternoon, shareholders vote on lifting the 2026 cap on CXMT wafer purchases to RMB7.85 billion, against a 2027 run-rate near RMB13.2 billion. The chairman of both companies abstains." publisher: "The Inference" section: "Chips" published: 2026-10-20T23:28:39.944Z modified: 2026-10-20T23:28:39.944Z canonical: https://theinference.org/article/gigadevice-votes-today-on-a-37-5-bigger-dram-wafer-bill-from-cxmt-its-chairman-s-other-company language: en keywords: "China, Semiconductors, Memory, Corporate Governance, Markets" --- # GigaDevice votes today on a 37.5% bigger DRAM wafer bill from CXMT, its chairman's other company > At an extraordinary general meeting in Beijing this afternoon, shareholders vote on lifting the 2026 cap on CXMT wafer purchases to RMB7.85 billion, against a 2027 run-rate near RMB13.2 billion. The chairman of both companies abstains. At 2:30pm Beijing time today, GigaDevice Semiconductor polls shareholders in a sixth-floor meeting room on Anding Road in Beijing on paying [RMB2.14 billion more this year](https://www.minichart.com.sg/2026/09/28/%e5%85%86%e6%98%93%e5%89%b5%e6%96%b0egm-2026-dram-foundry-spend-raised-to-rmb7-85-billion-do-insurance-and-registered-capital-changes-gigadevice-semiconductor-3986/) for DRAM wafers it does not make itself [1]. The extraordinary general meeting vote would lift the company's 2026 ceiling on those purchases by 37.5% [1]. GigaDevice, dual-listed in Shanghai and Hong Kong, designs NOR flash chips and its GD32 microcontroller line, and since 2021 [has outsourced its niche DRAM products, DDR4, DDR3 and LPDDR4X, to CXMT for manufacture](https://chipdispatch.com/articles/gigadevice-to-raise-related-party-transaction-budget-with-cxmt-parent-ef31ceba) [1]. CXMT, listed on the STAR Market, Shanghai's technology board, is China's only volume producer of DRAM wafers [1][2]. Zhu Yiming founded GigaDevice and chairs both companies [1][3]. He and InfoGrid Limited are named in the circular as having a material interest in the resolution and will abstain from voting [1]. The Inference [covered CXMT's sevenfold quarter](https://theinference.org/article/apple-s-new-ceo-keeps-chinese-dram-on-the-table-as-cxmt-posts-a-sevenfold-quarter) on October 17; what is new since is the buyer's side of the upcycle, the cap vote itself and the 2027 run-rate it discloses. ## The cap rises 37.5%, and 2027 starts even higher Chinese listing rules require companies to cap and disclose annual spending between related parties in advance, which is why the increase needs a shareholder vote [2]. The circular of September 28 lifts the 2026 ceiling on CXMT foundry purchases from RMB5.711 billion to RMB7.854 billion, up 37.5%, because foundry prices rose with the market [1]. GigaDevice had spent RMB3.596 billion of it by the end of August, 45.8% of the new cap [1]. The same notice forecasts RMB4.411 billion of purchases for January to April 2027 alone, an annualized pace near RMB13.2 billion, roughly 70% above the 2026 ceiling [1][3]. That annualized figure is illustrative, not a company forecast [1]. *Chart: **GigaDevice's wafer bill: the 2027 run-rate towers over the 2026 cap** Bars comparing GigaDevice's budgeted and revised 2026 caps on CXMT foundry purchases with the annualized 2027 run-rate* *Caps on GigaDevice's DRAM foundry purchases from CXMT Group, in RMB billions. The third bar annualizes the company's January-April 2027 forecast and is an illustrative step, not reported guidance. Sources: Minichart summary of the September 28, 2026 EGM circular; CTOL Digital Solutions. [1][3]* ## The seller's record profit is the other side of the bill The stated driver is price, not volume [1]. An July 8 supply-chain report [expected DDR4 8Gb contract prices to rise more than 50% quarter on quarter in the third quarter](https://www.gizmochina.com/2026/07/08/severe-memory-shortages-drive-ddr4-price-over-50-in-q3-2026-ddr3-also-gets-costlier/) [4]. TrendForce's news desk [put overall DRAM contract prices up roughly 40% in the third quarter](https://www.trendforce.com/news/2026/10/20/news-dram-prices-seen-rising-20-qoq-in-4q26-despite-slower-gains-ai-demand-tight-supply-support-outlook/), after about 80% in the second, and sees about 20% in the fourth [5]. *Chart: **DRAM prices climbed 80 percent, then 40 percent, with a 20 percent fourth quarter in view** Column chart of quarter-on-quarter DRAM contract price changes: about 80 percent in the second quarter of 2026, about 40 percent in the third, and about 20 percent expected in the fourth* *Quarter-on-quarter change in overall DRAM contract prices through 2026, as tracked by TrendForce; the fourth-quarter figure is its outlook, not a reported price. Source: TrendForce News, October 20, 2026. [5]* CXMT earned RMB77.6 billion of net profit on RMB150.3 billion of revenue in the first half of 2026, against RMB1.87 billion of profit in all of 2025 [1]. At a October 19 shareholder meeting it [guided nine-month net profit to RMB131–132.5 billion](https://www.trendforce.com/news/2026/10/20/news-cxmts-earnings-boom-faces-test-as-3q-profit-growth-slows-to-1-4-qoq-whats-behind-the-slowdown/), reversing a RMB5.3 billion loss a year earlier, with the full report due October 31 [6]. GigaDevice's rising wafer bill and CXMT's record profit trace to the same price increases. ## GigaDevice's own numbers are the defense Trailing-twelve-month revenue runs at RMB16.6 billion against RMB9.2 billion in 2025, net income at RMB7.9 billion against RMB1.65 billion, and gross margin near 57% against 40% [7]. [DigiTimes put first-half profit growth at 1,092%](https://digitimes.com/news/a20260819VL207/gigadevice-nand-dram-niche-profit.html) [8]. On those figures, selling prices have so far outrun the rising foundry bill [7]. The board, independent directors included, calls the CXMT pricing market-based and fair, and recommends approval [1]. TrendForce also reports CXMT's third-quarter profit growth easing to 1–4% quarter on quarter on moderating DRAM prices; if that cooling continues while the wafer bill steps up, the pass-through gets harder [6]. ## The next cap filing settles it Watch the poll result today, then [the new cap GigaDevice must file for May 2027 onward](https://www.ctol.digital/news/cxmt-dram-cycle-gigadevice-quota-capex/), due by spring [3]. If the new cap is again set near 70% higher, the upcycle is still setting prices; if it is flat, GigaDevice's margin absorbs the increase. ## Takeaway GigaDevice's EGM today votes on a 37.5% higher 2026 cap for CXMT wafers, and a disclosed 2027 run-rate near RMB13.2 billion suggests the related-party bill is still climbing faster than company revenue; margins have held so far, but the next cap filing settles who eats the next increase. ## Sources 1. [Minichart, "GigaDevice EGM 2026: DRAM Foundry Spend Raised to RMB7.85 Billion, D&O Insurance and Registered Capital Changes", 28 September 2026](https://www.minichart.com.sg/2026/09/28/%e5%85%86%e6%98%93%e5%89%b5%e6%96%b0egm-2026-dram-foundry-spend-raised-to-rmb7-85-billion-do-insurance-and-registered-capital-changes-gigadevice-semiconductor-3986/) 2. [Chip Dispatch, "GigaDevice to Raise Related-Party Transaction Budget with CXMT Parent", 28 September 2026](https://chipdispatch.com/articles/gigadevice-to-raise-related-party-transaction-budget-with-cxmt-parent-ef31ceba) 3. [CTOL Digital Solutions, "CXMT's GigaDevice quota says more than its RMB 34.9bn capex: China's DRAM champion is riding the cycle", 28 September 2026](https://www.ctol.digital/news/cxmt-dram-cycle-gigadevice-quota-capex/) 4. [Gizmochina, "Severe memory shortages drive DDR4 price over 50% in Q3 2026, DDR3 also gets costlier", 8 July 2026](https://www.gizmochina.com/2026/07/08/severe-memory-shortages-drive-ddr4-price-over-50-in-q3-2026-ddr3-also-gets-costlier/) 5. [TrendForce News, "DRAM Prices Seen Rising 20% QoQ in 4Q26 Despite Slower Gains; AI Demand, Tight Supply Support Outlook", 20 October 2026](https://www.trendforce.com/news/2026/10/20/news-dram-prices-seen-rising-20-qoq-in-4q26-despite-slower-gains-ai-demand-tight-supply-support-outlook/) 6. [TrendForce News, "CXMT's Earnings Boom Faces Test as 3Q Profit Growth Slows to 1-4% QoQ: What's Behind the Slowdown?", 20 October 2026](https://www.trendforce.com/news/2026/10/20/news-cxmts-earnings-boom-faces-test-as-3q-profit-growth-slows-to-1-4-qoq-whats-behind-the-slowdown/) 7. [Yahoo Finance UK, "GigaDevice Semiconductor Inc. (GIGA80.BK) income statement", collected 13 October 2026](https://uk.finance.yahoo.com/quote/GIGA80.BK/financials/) 8. [DigiTimes, "GigaDevice profit surges 1,092% on memory upcycle, niche DRAM and NAND gains", 19 August 2026](https://digitimes.com/news/a20260819VL207/gigadevice-nand-dram-niche-profit.html) --- GigaDevice votes today on a 37.5% bigger DRAM wafer bill from CXMT, its chairman's other company — The Inference. Canonical: https://theinference.org/article/gigadevice-votes-today-on-a-37-5-bigger-dram-wafer-bill-from-cxmt-its-chairman-s-other-company