CXMT, China’s Leading Memory Producer, Shifts Focus to DDR5 & HBM3 Manufacturing to Compete with Samsung, SK Hynix, and More

In a significant strategic move, ChangXin Memory Technologies (CXMT) in China is pivoting away from DDR4 memory production to concentrate on cutting-edge memory technologies.

CXMT’s Shift to DDR5: A Game-Changer for the DRAM Market

The technology landscape in China is evolving at an extraordinary rate, largely fueled by the nation’s efforts to enhance self-reliance in the face of U. S.restrictions. This drive for independence has spurred developments across various sectors, including artificial intelligence and computing solutions. One key player emerging from this transformative environment is CXMT. The company is set to commence local production of DDR5 memory modules, aligning itself with global standards (via DigiTimes).

CXMT boasts remarkable manufacturing capabilities, enabling it to quickly scale its production output. By the end of the first quarter of 2025, CXMT intends to phase out DDR4 technology, declaring it as end-of-life (EOL).Projections indicate that by late 2025, the company could produce as many as 280, 000 wafers each month, accounting for approximately 15% of global DRAM output. This milestone is particularly noteworthy considering that CXMT has faced limitations in accessing extensive manufacturing resources compared to its competitors.

Despite these ambitious plans, CXMT’s DDR5 technology remains in an immature stage. Current sample yields have been reported as suboptimal, leading the company to struggle to meet integration requirements with domestic partners, which resulted in reliance on alternatives from South Korea. Moreover, issues with performance stability under high temperatures present further challenges in marketing its products to consumers. Nevertheless, the company is optimistic and anticipates a breakthrough in their technology development by year-end.

In addition to its DDR5 efforts, CXMT is also speculated to be working on a high-performance High Bandwidth Memory (HBM) solution, potentially HBM3, building upon its existing capabilities with HBM2. This development could prove more consequential than the DDR5 transition, given that HBM technology is critical for contemporary AI accelerators. Should Huawei secure a consistent supply of HBM3, it might significantly influence the tech landscape.

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