China's ChangXin Memory Technologies (CXMT) won backing from NIO, an EV manufacturer, signaling domestic memory suppliers are gaining traction in China's integrated chip ecosystem.

Nio extended its stock rally after investing 158 million yuan ($23.3 million) in the initial public offering of ChangXin Memory Technologies (CXMT), China's largest DRAM maker, as soaring memory-chip prices continue to squeeze automaker margins.

CXMT is China's largest DRAM producer and ranks fourth globally by market share. Priced at 8.66 yuan per share, the IPO could raise as much as 66.6 billion yuan if the over-allotment option is exercised, making it China's second-largest IPO ever. The offering values the company at approximately 579.2 billion yuan. Nio Power Technology (Hefei), a Nio unit, was allotted 18.24 million shares—about 0.27% of the offering—with an 18-month lock-up period.

The investment positions Nio alongside other strategic investors including Xiaomi, Alibaba Cloud, Tencent, Meituan, Chery, and ZTE. The move reflects intensifying pressure on EV makers competing for memory-chip supply against AI data centers, smartphones, and consumer-electronics manufacturers. Nio founder and CEO William Li called CXMT "probably the hottest tech company in China right now," noting that memory costs have become one of the company's largest cost pressures. He cited memory and other raw material increases adding nearly 20,000 yuan to the cost of each ES8 SUV—a price increase of approximately 30,000 yuan that Nio has not fully passed to customers as it works with suppliers to offset impacts.

CXMT, state-backed and expected to play a key role in China's push for semiconductor self-sufficiency, is expanding capacity to challenge global leaders Samsung Electronics, SK Hynix, and Micron Technology. The investment comes as Apple reportedly tests CXMT's DRAM chips for devices sold in China and seeks approval to expand their use. Nio's U.S.-listed stock has gained 20% over the past year.