China's largest DRAM manufacturer, Changxin Memory Technologies (CXMT), is set to make a significant investment of approximately 349 billion yuan (about $7 billion). This move is seen as a step to enhance its competitiveness in High Bandwidth Memory (HBM) production, following its initial production of HBM3E.
On the evening of September 28, CXMT announced its new investment plan through a stock exchange disclosure. Of the total amount, 241 billion yuan will be allocated to technology research and development projects, while 108 billion yuan will be used for the construction of a backend testing facility.
Notably, of the 241 billion yuan earmarked for research and development, 223.98 billion yuan is designated for equipment purchases, accounting for 92.94% of the total investment. The project is expected to take 30 months to complete, during which CXMT aims to accelerate the generational transition of its products and processes, enhancing memory density, power efficiency, and performance.
CXMT has already entered the development and production phase of HBM3E. HBM is a high-bandwidth memory created by vertically stacking multiple DRAM chips, which requires advanced processes, yields, as well as stacking, packaging, and testing technologies, more so than conventional DRAM.
Thus, this investment in next-generation DRAM technology is likely to serve as a foundation for improving the process technology of high-performance DRAM used in HBM, potentially increasing production yields. Analysts suggest that the substantial investment in equipment will strengthen CXMT's research and development capabilities and its ability to transition to mass production of next-generation DRAM processes.
The 108 billion yuan allocated for the backend testing facility is also linked to HBM production. CXMT plans to build a testing plant at this site to handle DRAM testing and module assembly. The company noted that as production capacity expands and product variety increases, external testing capabilities may become insufficient, highlighting the need for in-house testing capabilities. Securing its own backend processing line is also a measure to prepare for the expansion of HBM production.
Ultimately, this investment is viewed as a strategic move not just to increase DRAM production capacity but also to prepare for the competitive landscape of high-performance memory, particularly as CXMT looks ahead to HBM4 following HBM3E.
Meanwhile, U.S. technology news outlet The Information reported on August 31, citing two sources familiar with the matter, that CXMT has begun limited production of HBM3E. The produced HBM3E is currently undergoing qualification testing at two companies: Alibaba's AI semiconductor design firm, Pingtouge, and Chinese AI semiconductor company Cambrian. If successful, CXMT's HBM could be included in products slated for release as early as 2027.
* This article has been translated by AI.
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