China’s Top Memory Manufacturer Faces HBM3 Challenges as Local DRAM Producers Accelerate HBM Production

China’s local memory chip manufacturers are in a fervent race to produce High Bandwidth Memory (HBM) chips. However, the leading DRAM producer, CXMT, is encountering significant challenges with its HBM3 technology development.

Challenges in HBM3 Development Causing Concerns for China’s AI Sector

The Chinese AI industry is experiencing phenomenal growth, driven by key players like Huawei and various chip manufacturers. Despite facing stringent regulations on advanced chip fabrication, the domestic AI ecosystem has managed to thrive. Recent advancements have seen local DRAM producers sampling their inaugural HBM3 solutions to integrate with cutting-edge AI chips.

At Semicon China 2026, several Chinese vendors introduced their latest innovations in DRAM technology. Notably, JCET showcased its HBM3e packaging solution utilizing 2.5D stacking technology, achieving an impressive bandwidth of 960 GB/s per stack and enhancing interconnect density by 20% compared to previous generations.

JCET just announced a HBM3e solution last month In feb, A Chinese state lab also made a mass produce-able HBM4 prototype process using purely domestic equipment pic.twitter.com/HiSI1YXKXs

— WarChud (@SheerC12972) April 20, 2026

While JCET’s HBM3e design is innovative, the company currently lacks the necessary manufacturing capabilities, resulting in its reliance on outsourcing production.

CXMT, the dominant DRAM producer in China, is also facing hurdles in HBM3 production. Initially slated for a launch in the first half of 2026, CXMT has yet to place any orders for mass production of its 4th Generation HBM solution.

A source within the semiconductor industry noted, “CXMT’s technological progress has been rapid, but the HBM3 mass production schedule continues to be delayed. Given the current pace of development, mass production this year seems implausible.”

via ZDNET Korea

Reports indicate that CXMT’s HBM3 memory remains in the testing stage, with available supplies suitable only for sample production rather than large-scale manufacturing. Despite noteworthy advancements in the HBM sector, experts suggest that the readiness of CXMT’s HBM3 solution may stretch into the next year.

Meanwhile, other global DRAM manufacturers are rapidly transitioning into mass production for HBM4 memory and enhancing HBM3E solutions targeted at next-gen AI data centers. The upcoming HBM4 is expected to be instrumental in new data center chips, including NVIDIA’s Vera Rubin and AMD’s MI400, which are anticipated to launch later this year.

The holdup in China’s HBM3 production could create a supply gap for domestic AI chipmakers, such as Huawei, potentially forcing them to depend on external solutions or postpone the release of their next-generation products until CXMT and its counterparts can initiate mass production.

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