CXMT, China’s Leading Memory Manufacturer, to Focus Significant DRAM Production on HBM3 for AI Competition

China’s CXMT is making significant strides in the High Bandwidth Memory (HBM) sector, strategically positioning itself to leverage the surge in artificial intelligence (AI) demand. Recent reports indicate the company is redirecting a considerable portion of its DRAM production towards HBM technologies.

CXMT’s Expansion in the HBM Market: Implications for Consumer Memory Pricing

As competition intensifies within the DRAM industry, opportunities are emerging for firms like CXMT to explore new avenues. Recent conversations suggest that Chinese manufacturers might alleviate ongoing memory shortages for gamers; however, this promise may not materialize as anticipated. According to a report from the Korean publication MK, CXMT plans to commit 20% of its production—approximately 60, 000 wafers—to HBM3, capitalizing on the rising demand.

The appetite for HBM technology is particularly pronounced in China’s AI landscape, especially since local companies face restrictions from accessing supplies from South Korean firms. Notably, we previously highlighted that Huawei’s efforts to ramp up AI chip production are heavily hampered by HBM shortages, not by semiconductor availability. This shortage stems from their reliance on a stockpile acquired from Samsung before recent export controls were imposed.

HBM Market To Witness Price Surge Up To 10% By 2025 As Demand Set To Double Next Year 1 — Samsung HBM

Although Chinese memory manufacturers aim to narrow the gap in the HBM market, CXMT’s HBM3 offerings have yet to be fully integrated into mainstream applications. A significant challenge lies in achieving competitive yield rates, particularly since CXMT does not have access to Extreme Ultraviolet (EUV) lithography, relying instead on multi-patterning techniques. Despite this obstacle, CXMT’s advancement in HBM3 technology could represent a pivotal development that empowers Huawei to enhance its Ascend chip production.

Moreover, CXMT has initiated discussions with major global PC manufacturers, underscoring the growing interest in their DRAM capabilities. While these talks are still in the preliminary validation phase, a successful breakthrough in HBM production could redirect a substantial portion of DRAM output towards HBM products. This shift could jeopardize the expectation of affordable Chinese memory options for gamers.

Source & Images