[News] Decoding CXMT: DDR5 Breakthroughs and What’s Next

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As Chinese memory powerhouse CXMT reportedly began mass-producing DDR5 chips in late 2024, a wave of intrigue has surrounded its technological advancements. Despite the tightening grip of U.S. chip controls, the company seems to be breaking through to more cutting-edge processes, leaving the industry buzzing with curiosity about its next moves. Here’s a quick round-up about CXMT’s recent updates.

DDR5 and 10-nm Class Milestones

Starting from late 2024, South Korea’s memory chipmakers have reportedly initiated production cuts on legacy DRAMs in response to declining prices driven by increased output from China. However, it now appears that CXMT is not only pressuring with lower-priced products but also with improved quality.

According to MyDrivers, CXMT has made notable strides in DDR5 production, as the yield rate has reportedly reached 80%.

Notably, the scenario has raised alarms among companies like Samsung. Interestingly enough, according to fnnews, Samsung has dispatched an investigation team to China, as CXMT has begun mass production of DRAM using a D1z (sub-16nm) process.

The fnnews notes that in the 10nm-class DRAM process, circuit widths narrow progressively from D1x to D1y and then to D1z. Experts cited by the report believe that CXMT, which had previously been producing products using D1x (18nm) and D1y (17nm) technology, has officially begun adopting the D1z process.

The next-gen processes following D1z are referred to as D1a, D1b, and D1c, the report adds.

Samsung has reasons to be concerned, indeed. According to a MoneyToday report, while Samsung developed its 5th-generation 10nm-class (1b) DRAM in December 2022 and announced mass production in May 2023, there has been no news regarding its 1c DRAM progress since then. The current HBM leader, SK hynix, is reportedly set to become the first in the world to mass-produce DRAM using the 1c process as soon as in February.

Aggressive Recruitment Poses a Threat

In addition to governmental support, CXMT’s advancements could also be attributed to its strong talent pool. According to The Korea Economic Daily, South Korea’s semiconductor sector is grappling with a severe talent drain as Chinese companies like CXMT aggressively recruit engineers from major players Samsung Electronics and SK hynix.

Notably, 35% of CXMT’s engineers are reportedly South Korean, posing a significant threat to the long-term sustainability of South Korea’s semiconductor industry, the report adds.

IPO Plan in Works

The Chinese memory giant may be aiming for something bigger, as it is reportedly considering an initial public offering (IPO) in Hong Kong as early as 2025. According to Commercial Times, citing IFR, the company is currently in discussions with potential financial advisors and plans to raise approximately $1 billion.

This is not the first time CXMT mulls about an IPO. A previous report from Reuters noted that the Chinese memory chip maker restructured its shareholders in mid-2023 to prepare for a potential listing but decided to delay until market conditions improve after discussions with regulators and investors.

Read more

• [News] Chinese DRAM Giant CXMT Reportedly Achieves 80% DDR5 Yield, Targeting 90% by 2025
• [News] SK hynix Announces First 1c DDR5, Set for Shipment Next Year

(Photo credit: CXMT)