With strong backing from the Chinese government, Changxin Memory Technologies (CXMT) is aggressively expanding its DRAM production capacity, potentially challenging the triopoly led by Samsung Electronics, SK Hynix, and Micron.
CXMT has steadily increased its production capacity each year, supported by government subsidies, according to reports from Newsis and Bloter, citing Nomura Securities. The company's output grew from 120,000 wafers per month at the end of 2023 to 160,000 in the first quarter of 2024 and is projected to reach 200,000 by year-end, representing 11% of global DRAM production.
Nomura Securities predicts that if CXMT expands its DRAM production capacity as planned, it will account for 15% of the global DRAM market. In terms of production volume alone, it would become the world's fourth-largest DRAM manufacturer after Micron.
CXMT's rapid expansion could challenge the Big Three's dominance in the DRAM market, which has been established since the early 2010s. However, with a global market share of under 1% and a focus on older products like DDR4 and LPDDR4, CXMT remains two to four years behind in cutting-edge technologies such as HBM3E, DDR5, and LPDDR5X, according to analysts.
In February, Nikkei reported that CXMT is working to develop its first domestically-made high bandwidth memory (HBM) in response to increasing US export controls. The report indicated that CXMT had placed orders with US and Japanese suppliers for equipment needed for HBM production, which is not yet restricted by export controls.
In March, Bloomberg reported that the US is considering adding six Chinese companies, including CXMT, to its trade blacklist, as part of a broader effort to restrict China's development of advanced semiconductors. CXMT said the company complies with US export regulations and supports fair competition, emphasizing that its products are primarily used in everyday consumer goods, underscoring its focus on civilian and commercial applications.
Source: IDC, September 2024
