Chinese Chipmaker CXMT Sues Pentagon Over Military Company Designation

ChangXin Memory Technologies (CXMT), China’s top dynamic random-access memory chipmaker, filed a federal lawsuit on Aug 28 against the United States Department of Defense, seeking removal from a Pentagon list identifying it as a Chinese military company, according to reporting from Reuters published by The Straits Times.

The designation blocks defense contracts without restricting commercial sales.

The legal action was filed in the US District Court for the District of Columbia.

Defendants named in the complaint include the US Department of Defense, Defense Secretary Pete Hegseth, Deputy Defense Secretary Steve Feinberg, and Assistant Secretary of Defence for Industrial Base Policy Michael Cadenazzi, as reported by The Straits Times.

CXMT stated in the lawsuit that it designs, produces, and sells its dynamic random-access memory (DRAM) chips strictly for civilian and commercial use rather than military applications.

“CXMT is not affiliated with the Chinese military,” the company said in the court filing, according to The Straits Times.

Pentagon Listing and Repercussions

The Department of Defense initially designated CXMT as a Chinese military company in January 2025 under the Biden administration, according to The Straits Times.

The Trump administration subsequently kept the company on the list in a June update.

CXMT argued in the complaint that the Pentagon’s decision was arbitrary, lacked evidentiary support, and violated its due-process rights.

The company reported spending more than a year providing information to challenge the designation and seeking removal from the roster.

According to the complaint cited by The Straits Times, the Defense Department published a notice in February 2026 stating CXMT would be removed, but withdrew that notice later the same day.

The company alleged the Defense Department relisted it in June without adequately explaining the change in position.

“None of these determinations is supported by the factual record, by applicable law, or by reasoned decision-making,” CXMT stated, according to The Straits Times.

CXMT’s lawsuit seeks to overturn the designation to remove government contracting restrictions and repair what it describes as ongoing harm.

“Since its initial designation in January 2025, CXMT has continuously suffered reputational and commercial harm,” the company stated to Reuters, adding that it is pursuing the action to protect its business interests.

The US Defense Department told Reuters in a statement that it does not comment on pending or ongoing litigation.

Market Position and Legal Precedents

CXMT operates as the world’s fourth-largest DRAM maker and recently passed Tencent to become China’s most valuable listed company, according to reporting from The Next Web.

The company’s DRAM chips are widely used in smartphones, personal computers, servers, artificial intelligence systems, and other electronics, as reported by The Straits Times.

CXMT reported that its revenue spiked 874 percent in the first half, and Reuters has reported that the firm hopes to enter the US market in the long term.

The litigation mirrors actions taken by other major Chinese technology firms facing similar Pentagon designations.

In June, Alibaba sued the US government over being placed on a list of businesses linked by the Department of Defense to China’s military, according to The Straits Times.

Additionally, smartphone and electric-vehicle maker Xiaomi successfully removed itself from a similar Pentagon list in 2021 by filing a lawsuit in a US court.