Alibaba has invested 7.6 billion yuan in CXMT ChangXin Memory Technologies ahead of its 29.5 billion yuan initial public offering (IPO). This makes Alibaba the largest industrial investor, and after the listing, its equity is valued at approximately $130 billion.
Alibaba acquired about 7.6 billion yuan in two tranches, securing nearly a 5% stake in CXMT ChangXin Memory Technologies before the STAR market IPO. According to the IPO valuation, Alibaba's stake is worth approximately 130 billion yuan, corresponding to an estimated return multiple of 17.
This investment pattern reflects a significant shift in Alibaba's corporate strategy under CEO Eddie Wu, the technical co-founder who returned to lead the company in 2023. Alibaba's initial investment in 2021 was around 1% and was a typical move to solidify its position. However, the decisive decision was made in June 2025 when Alibaba significantly increased its stake to nearly 5% leading up to the IPO, making the largest industrial bet in a semiconductor company.
Industry sources suggest the strategic logic is similar to how a battery plant invests in a lithium mine. The development of artificial intelligence faces several bottlenecks: first computational power, then data storage, and finally power supply. Alibaba's investment in CXMT, combined with the development of custom AI chips by the T-Head division, creates the hardware foundation for computing and data storage in Alibaba Cloud, ensuring critical supply chain support. CXMT's DRAM products are necessary for both cloud server memory and high-performance AI accelerator memory.
This investment strategy demonstrates a broader transformation in Alibaba's capital allocation. Over the past three years, the company has invested about 36 billion yuan in AI-related companies, including five out of six major Chinese AI model startups: Zhipu AI, Baichuan AI, Yiqi Wanwu, Moonshot AI, and MiniMax, as well as in semiconductor and robotics companies. These investments have yielded over 200 billion yuan in unrealized profit. Unlike the previous era, where the goal was gaining control, integration, and exclusivity in entities like Intime Retail and Sun Art Retail, which resulted in billions in losses, the new approach focuses on non-controlling stakes, non-exclusive partnerships, and 'compute-for-equity' agreements.
The CXMT IPO itself is a historic event. With a placement of 29.5 billion yuan, it became the largest IPO on the STAR market since SMIC's 53.2 billion yuan listing in 2020. CXMT has become one of the few companies, besides Samsung, SK Hynix, and Micron, capable of producing DRAM in large volumes, with Apple and other global clients expecting capacity allocation. The company has transformed from years of losses during the memory price war to re-signed production capacities driven by explosive demand for AI, both for traditional DRAM and new HBM class memory.
Alibaba's stake in CXMT serves multiple strategic goals simultaneously: financial returns from what is expected to be the most anticipated semiconductor IPO of the year, ensuring supply chain security for Alibaba Cloud memory procurement, and hedging the chip ecosystem, which complements its self-developed AI processors, Pingtouge. The 17x return multiple also validates Eddie Wu's thesis that disciplined, AI-focused capital allocation can yield both strategic advantages and superior financial returns compared to the earlier period of costly retail investments.
The government has approved a new National Investment Policy for Urea (NIPU-2026), the first in nearly 14 years. The policy aims to stimulate investments in eight to nine new gas plants, both Greenfield and Brownfield, with a total production capacity of 10 million tons (MT).
Minister of Information and Broadcasting Ashwini Vaishnaw told journalists after the Cabinet meeting that India's urea consumption is about 40 million MT, while domestic production reaches approximately 30 million MT, with the shortfall being covered by imports. The new policy is designed to eliminate this deficit and ensure the country's self-sufficiency in urea production.
The proposed capacity expansion plan will involve private, public enterprises, as well as cooperatives. This investment base is an updated version of the 2012 New Investment Policy (NIP). Key changes compared to the 2012 policy include the separation of fixed and variable costs to enhance transparency, the introduction of a return on equity range with a minimum threshold of 12% and a maximum of 16%, and the reduction of currency risks by converting fixed expenses into rupees over four years based on prevailing exchange rates.
According to the Ministry of Fertilizers, these measures will allow for savings of over 250 crore rupees on each plant established under NIPU-2026 compared to NIP-2012.
Each of the planned 8-9 plants will have an estimated annual capacity of about 1.27 million MT. According to EY India data, every million tons of domestic urea production replacing imports can save between $300 and $500 million annually in foreign exchange expenditure, while simultaneously reducing the subsidy burden on imported urea.
Satyam Shivam Sundaram, a partner at EY India in the public and social sector, noted that this increases confidence in investing in modern, efficient, and environmentally responsible production facilities. Furthermore, the construction of these plants will create between 20,000 and 30,000 jobs, as well as about 50,000 direct and indirect jobs.
Sources report that the new policy provides benefits for eight subsequent years for plants commissioned within five years of notification, including the possibility of guaranteed buyback. Geopolitical tensions, which disrupted imports and caused price hikes, have spurred the increase in domestic urea production.
Another significant change concerns the accounting for exchange rate fluctuations. The provision for revising basic and ceiling prices for gas remains in effect if the delivered gas prices change by $0.1 per MMBTU. For Greenfield and brownfield projects, a base gas price of $281 per ton of urea is proposed (compared to $305 under the previous policy), and the upper limit is reduced to $301 from the previous $335. For Brownfield and expansion projects, the base price is set at $263 per ton versus $285 under the 2012 policy, and the upper limit is reduced to $283 from $310. These adjustments align with exchange rate changes. Sources estimate the approximate cost of a Greenfield project to be around 11,000 crore rupees, and for Brownfield, 9,000 crore rupees, based on the rupee-dollar exchange rate of 90.
Data shows that under the old NIP 2012 policy, which expired in October 2019, six new urea units were built, including four through joint ventures of state-owned companies and two by private firms. Currently, 33 urea production units are operating in India with an assessed/installed capacity of 26.94 million MT.
Balasaheb Darade, President of Gasification Technologies & Research Council of India (GTRC-India), emphasized that since urea demand approaches 40 million MT, and import dependence is 27.5%, with 95% of production relying on natural gas largely dependent on imported LNG, India requires a long-term strategy based on domestic resources. Demand is projected to exceed 45 million MT, and more than 82% of urea plants in India, or 27 out of 33 operating units, are older than 25 years.
India imports about 26% of its annual urea requirement, putting pressure on the exchequer amid disruptions related to the Middle East crisis. At the peak of the crisis, some estimates placed the fertilizer subsidy in India for FY27 at approximately 3 trillion rupees. If this had occurred, it would have exceeded the record 2.51 trillion rupees spent in FY23 and surpassed the budget estimate for FY27 of 1.79 trillion rupees by more than 67%, or about 1.29 trillion rupees. However, subsidy forecasts have recently softened following China's decision to ease export restrictions and India's efforts to build adequate reserves to meet short-term demand.
Tata Capital successfully raised $400 million by issuing a three-year offshore bond. Due to significant investor demand, the price was adjusted by 33 basis points compared to initial forecasts.
This fixed-rate bond was priced 107 basis points above three-year US Treasury bonds. This proved to be a more favorable condition than initially anticipated (140 basis points), as strong investor interest allowed the lender to reduce the price by 33 basis points. The bond features a fixed coupon of 5.332 percent.
According to the company, this issuance was the largest in terms of price reduction among single-tranche USD investment bonds from India in 2026. The sale attracted orders that were approximately four times the base issuance volume. Participants in the deal included investors from Asia, Europe, the Middle East, and Africa (EMEA), such as insurance companies, banks, asset managers, and other institutional investors, as stated in the company's announcement on Wednesday.
Prior to the issuance, Tata Capital held meetings with investors in Hong Kong, Singapore, and London. These bonds were issued under Tata Capital's $2 billion Euro Medium Term Note (EMTN) program and carry a BBB rating with a stable outlook from S&P. The non-banking financial company stated that this transaction will help diversify funding sources and strengthen its liability profile by expanding access to international debt markets.
Rajiv Sabharwal, Managing Director and CEO of Tata Capital, expressed gratitude to global investors for the positive response to the second USD bond issuance. He emphasized that this is the first issuance following S&P's upgrade to BBB and the successful listing of shares, which is an important step for further diversifying the financing structure and expanding access to international capital. Furthermore, Tata Capital reported that at the time of issuance, it remained the only private NBFC in India with an investment grade rating for access to the USD bond market.
HSBC, MUFG, and Standard Chartered Bank acted as joint global coordinators and joint underwriters for this transaction.
