Following Alibaba, China's Memory Chip Leader ChangXin Memory Technologies Sues Pentagon

On Friday, ChangXin Memory Technologies (CXMT), China's leading memory chip maker, sued the Pentagon over its inclusion on a U.S. list of companies alleged to assist China's military.

CXMT Challenges Pentagon Military Designation

According to Reuters, CXMT filed a lawsuit in the U.S. District Court for the District of Columbia, seeking to overturn the designation and have its name removed from the Pentagon's list.

"CXMT has no affiliation with China's military," CXMT stated in the lawsuit. "CXMT designs, produces, and sells DRAM chips for civilian and commercial use, not for military purposes."

The Pentagon initially placed CXMT on the list in January 2025 during the Joe Biden administration. The Donald Trump administration retained the company on the list in a June update.

Chip Maker Calls Decision Arbitrary

CXMT argued that the Pentagon's decision was "arbitrary" and lacked sufficient evidence, while also alleging violations of its due process rights.

According to court documents, CXMT spent over a year providing information to the Pentagon to challenge the designation.

The company also stated that the Department of Defense issued a notice in February indicating it would be removed from the list, but withdrew the notice the same day.

CXMT said the designation has caused "reputational and commercial damage" since it was initially listed.

The Department of Defense told the media outlet it does not comment on "pending or ongoing litigation." The department did not immediately respond to a request for comment.

CXMT Eyes U.S. Market Amid Chip Boom

CXMT is China's largest DRAM producer, supplying memory chips for smartphones, personal computers, servers, and AI systems.

Its revenue surged 874% in the first half of 2026, highlighting its rapid expansion amid booming AI-related memory demand.

The lawsuit comes shortly after Alibaba Group Holding Ltd. filed its own challenge against the Pentagon over a similar designation.

Xiaomi Corp. also successfully challenged its designation in 2021 and was ultimately removed from the list.