China's CXMT is expanding its presence in the HBM market, aiming to capitalize on the AI frenzy, as the company is now reported to be converting a large chunk of its DRAM output.
CXMT's Capacity Shift Towards HBM Does Put the Idea of "Cheaper" Consumer Memory Under Threat
Given how competitive the DRAM industry has become in recent times, it has opened up newer opportunities for Chinese memory manufacturers like CXMT. One of the more interesting talks in recent times is how DRAM suppliers from China are 'somehow' going to save gamers from the ongoing memory shortages, but it appears that this might never be the case. In a new report by the Korean outlet MK, it is disclosed that CXMT is looking to benefit from the DRAM demand coming its way and plans to allocate 20% of its total production to HBM3, which is approximately 60,000 wafers.
It is reported that demand for HBM is massive in China's AI market, especially since the region is cut off from access to solutions from Korean memory manufacturers. In a related coverage, we discussed that the biggest bottleneck for Huawei in scaling up AI chip production is actually HBM, rather than semiconductors, given that the chip giant has relied on a stockpile from Samsung accumulated in the pre-export-control era.
Chinese memory giants are trying to close the gap in the HBM market, but CXMT's HBM3 solution hasn't yet reached mainstream markets. The primary concern with HBM3 from China is, of course, how yield rates would stack up, given that, without EUV access, multi-patterning is the only option CXMT currently has. However, given that when you factor in the state of the Chinese HBM industry, CXMT's HBM3 technology would be a significant breakthrough, one that could allow Huawei to scale up production of its Ascend chips.
CXMT is also reported to be in discussions with global PC manufacturers, as their DRAM capacity is an asset that companies are looking to acquire. For now, talks haven't gone beyond the validation stage, but if CXMT makes a breakthrough in HBM production, we could see a significant chunk of DRAM production allocated to it. And again, for gamers, well, the idea of sourcing Chinese memory at 'cheap' prices could be under jeopardy.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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