Chinese memory company Changxin Memory Technologies (CXMT) is reportedly closing in on the global DRAM market dominated by Samsung Electronics, SK Hynix, and Micron. Some of its products are now trading at prices comparable to those of Samsung and SK Hynix, causing significant shifts in the global market.
According to industry sources, Apple is currently testing CXMT memory for use in iPhones and MacBooks sold overseas, with plans to initially incorporate it into products sold in China. HP and Acer have already equipped some laptops sold outside the U.S. with CXMT memory. The company is also expanding its customer base among global PC manufacturers, indicating its entry into the global supply chain.
Product performance is rapidly improving. Recently, Chinese PC component manufacturer Colorful demonstrated CXMT DRAM running DDR5 modules at over 8800MT/s on the AMD X870E platform. Since launching DDR5 at the end of last year, CXMT has been increasing its applications primarily among Chinese memory module manufacturers.
However, it is generally acknowledged that CXMT lags behind Samsung and SK Hynix in manufacturing processes. The U.S. export restrictions on advanced equipment have prevented CXMT from using extreme ultraviolet (EUV) lithography, forcing it to rely on deep ultraviolet (DUV) processes.
Market analysts are increasingly viewing CXMT as a viable competitor to the established DRAM leaders. Elly Wang, an analyst at TrendForce, recently described CXMT as a “valid challenger” that could threaten the top three memory companies. She noted that the ongoing supply shortages are prompting customers to diversify their suppliers, providing CXMT with additional opportunities to expand its market presence.
Market share data supports this view. According to market research firms, CXMT's global DRAM revenue share rose to approximately 7% in the second quarter of this year. This growth comes as major companies focus on high-bandwidth memory (HBM), allowing CXMT to exploit gaps in the market. The extensive support from the Chinese government and a vast domestic market are also significant advantages.
The pricing landscape has also changed. Recent reports indicate that some of CXMT's DDR5 products are trading at prices similar to or even higher than those of Samsung and SK Hynix in the Chinese market. The ongoing supply shortages have created an environment where CXMT can sell its products without significantly lowering prices.
CXMT plans to more than double its production capacity by 2028. Industry observers are closely watching how the new production capabilities of Chinese firms will impact the market, particularly in general-purpose DRAM, where competition for pricing and customer acquisition is expected to intensify.
Neil Shah, vice president at Counterpoint Research, predicted that if CXMT expands its production capacity and capabilities to meet the demands of major global Tier 1 customers, its market share could look very different in a year.
* This article has been translated by AI.
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