[News] Chinese Memory Makers, Led by CXMT, Advance in the DRAM Market, Challenging Samsung, SK Hynix, and Micron

A report from Nikkei highlights that, despite U.S. restrictions, China’s share of the global memory chip market has risen from virtually zero to 5% in just five years. This rapid growth poses challenges to global giants like Samsung Electronics, SK hynix, and Micron.

Notably, according to TrendForce, when considering factors such as capacity, production quality, and actual market impact, the combined market share of all Chinese players could surge to 10% in 2025, doubling from 5% last year.

CXMT: Leading the Charge of China’s Growing Presence in the Global Memory Chip Market

Much of China’s market share growth comes from ChangXin Memory Technologies (CXMT). As noted by the report, after two years of expanding capacity in Beijing and Hefei, CXMT now has the capability to produce commercially viable DRAM chips—a critical component for nearly every electronic device. Furthermore, the company is also working to manufacture high-bandwidth memory (HBM) chips for AI applications.

Based solely on its wafer production capacity, CXMT could produce the equivalent of approximately 10% of the global DRAM chip production for 2024. However, due to relatively low production quality, its actual market share remains significantly smaller. Nonetheless, the report, citing industry sources, suggests that its share is expected to grow steadily over time.

Other Chinese Players in the DRAM Industry

Other Chinese companies are also making strides in the DRAM market. Fujian Jinhua Integrated Circuit Co. (FJICC), which was blacklisted by the U.S. in 2018, has been producing small batches of low-grade DRAM for consumer electronics with support from Huawei. Similarly, Huawei-backed SwaySure, which was added to the U.S. blacklist in December, is not only developing DRAM but also researching HBM stacking technologies, as noted in the report.

Competitive Dynamics in the DRAM Market

The report emphasizes that although Chinese companies occupy a relatively small portion of the market, their share remains significant due to the DRAM market’s volatility and its high sensitivity to shifts in supply and demand.

Micron CEO Sanjay Mehrotra, as cited in the report, stated that Chinese competition is largely concentrated in the lower end of the consumer market. Micron, in contrast, plans to focus on producing higher-grade and high-performance DRAM chips, such as those used in data centers.

While both Samsung and SK hynix declined to comment, the report, citing sources, indicates that these companies recognize the capabilities of Chinese manufacturers in older generations of DRAM. However, their main focus are on more profitable markets like HBM.

Although CXMT’s main products consist of older generations of DRAM for entry-level smartphones, computers, and tablets, the report highlights that the company has started supplying small batches of LPDDR5, a type of DRAM utilized in premium smartphones like iPhone and Samsung Galaxy S and Z series.

On the other hand, while geopolitics may pose a challenge, CXMT was not added to the U.S. trade blacklist during the latest round of export controls announced in December, as the report notes. However, the U.S. Defense Department has identified the company as being associated with the Chinese military, a designation that could potentially impact its partnerships and collaborations in international markets.

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(Photo credit: CXMT)