With the rising demand in the memory market and Chinese memory companies actively preparing for competition, a report from TechNews indicates that Zhou Meisheng, formerly the assistant to SMIC’s co-CEO Liang Mengsong, has joined ChangXin Memory Technology (CXMT) as the head of the Technical Research and Development Center, attracting attention.

Zhou Meisheng has previously served as the CTO of Lam Research in China, a global research and development equipment technology company. Before that, she held positions in various semiconductor companies, including Chartered Semiconductor (Singapore), UMC, and GlobalFoundries.

Starting in 2017, she served as the Executive Vice President of R&D at SMIC, directly reporting to co-CEO Liang Mengsong. She played a crucial role as Liang Mengsong’s key assistant in driving SMIC’s advanced process initiatives. In 2022, Zhou Meisheng retired, resigning from all positions at SMIC, sparking speculation.

The technology of CXMT continues to make breakthroughs, and by the end of 2023, the official website of CXMT announced the development of China’s first LPDDR5 DRAM chip. They introduced a series of LPDDR5 products, including 12GB LPDDR5, 12GB LPDDR5 with POP packaging, and 6GB LPDDR5 with DSC packaging.

LPDDR5 represents the fifth generation of low-power DRAM, and compared to the previous LPDDR4X, the new LPDDR4X has a 50% increase in capacity and speed, reaching 12GB capacity, a data transfer rate of 6,400Mbps, and a 30% reduction in power consumption.

In fact, CXMT’s main competitor Samsung announced the mass production of 12GB LPDDR5 mobile DRAM in July 2019, while Micron supplied LPDDR5 DRAM with capacities of 6GB, 8GB, and 12GB in February 2020. SK Hynix, on the other hand, announced the mass production of 18GB LPDDR5 mobile DRAM in August 2021. Therefore, considering the timeline, there’s an approximate four-year technology gap between CXMT and other global giants.

As for the DRAM market, it currently remains highly concentrated, dominated by key players such as Samsung Electronics, SK Hynix, and Micron Technology, collectively holding over 96% of the entire market share.

Read more

• [News] SMIC’s Net Profit Halved Last Year, Faces Further Reductions This Year
• [News] CXMT’s LPDDR5 Release Fuels in Chinese Memory Market, Spotlight Progress of Global Memory Giants

(Photo credit: CXMT)

According to sources cited in Bloomberg’s report, the US government is considering imposing sanctions on Chinese technology firms, including ChangXin Memory Technologies (CXMT), in its latest move against China’s advanced semiconductor sector.

The same report has pointed out that the US Department of Commerce’s Bureau of Industry and Security (BIS) is currently considering including CXMT in the Entity List, which would restrict the listed companies’ access to US technology. Apart from CXMT, US officials are also contemplating restrictions on five other Chinese companies, though the final list has yet to be confirmed.

Regarding this matter, the BIS and White House National Security Council declined to comment.

CXMT is a major Chinese DRAM manufacturer whose products include chips applicable in computer servers, smart vehicles, and other devices. Its primary competitors include Micron, Samsung Electronics, and SK Hynix. Micron.

The recent actions by the US government reportedly stem from Huawei’s breakthrough last year in circumventing US restrictions to acquire advanced process chips, specifically obtaining chips using the 7-nanometer process from SMIC (Semiconductor Manufacturing International Corporation). This allowed Huawei to make a comeback in the 5G smartphone market, prompting concerns and responses from the US government.

Gina Raimondo, the US Secretary of Commerce, has responded by stating that the US will take “as strong and effective action as possible” to uphold national security interests.

Currently, companies that have been listed on the Entity List by the US Department of Commerce include Huawei, SMIC (Semiconductor Manufacturing International Corporation), and Shanghai Micro Electronics. Additionally, China’s other major memory manufacturer, Yangtze Memory Technology Corp, was added to this restriction list in 2022.

Read more

• [News] Bypassing U.S. Restrictions? CXMT Showcases GAA Technology for 3nm Chips
• DRAM Industry Sees Nearly 30% Revenue Growth in 4Q23 Due to Rising Prices and Volume, Says TrendForce

(Photo credit: CXMT)

According to a report from IJIWEI, research by Barclays analysts indicates that China’s chip manufacturing capacity is expected to more than double within the next 5 to 7 years, surpassing market expectations significantly. The analysis of 48 chip manufacturers with production facilities in China suggests that 60% of the expected additional capacity may come online within the next 3 years.

TrendForce statistics reveal that, excluding 7 dormant wafer fabs, China currently has 44 wafer fabs, with 25 of them being 12-inch facilities, 4 of them 6-inch, and 15 8-inch wafer fabs/lines. Additionally, there are 22 wafer fabs under construction, with 15 of them being 12-inch facilities and 8 being 8-inch wafer fabs.

Companies like SMIC, Nexchip, CXMT and Silan plan to construct 10 more wafer fabs, including 9 12-inch and 1 8-inch wafer fab, by the end of 2024, bringing the total to 32 large-scale wafer fabs, all focusing on mature processes.

Chinese firms have accelerated the procurement of crucial chip manufacturing equipment to support capacity expansion. According to the previous report from South China Morning Post, the import value of lithography equipment from the Netherlands, a primary exporter, surged by 1050%, reflecting substantial orders for semiconductor equipment from China in 2023.

Barclays analysts suggest that most of the new capacity will be used for producing chips using older technologies. These mature semiconductors (28nm and above) lag behind the most advanced chips by at least a decade but are widely used in household appliances and automotive systems.

While these chips could theoretically lead to a market oversupply, Barclays believes it will take several years, possibly as early as 2026, depending on quality and any new trade restrictions.

Earlier, TrendForce released statistics projecting a global ratio of mature (>28nm) to advanced (<16nm) processes around 7:3 from 2023 to 2027. With China’s mature process capacity expected to grow from 29% to 33% by 2027, driven by policies promoting local production, giants like SMIC and HuaHong Group are anticipated to lead the charge, potentially causing a flood of mature processes into the global market and triggering a price war.

TrendForce notes that as China’s mature process capacities emerge, localization trends for Driver IC, CIS/ISP, and Power Discretes will become more pronounced, leading to risks of client attrition and pricing pressures for second and third-tier foundries with similar processes.

According to a news report from UDN, despite U.S. restrictions on the exportation of technologies related to advanced semiconductor processes, China is fortifying its independent chip development capabilities.

ChangXin Memory Technologies (CXMT), a Chinese DRAM chip manufacturer, presented a paper at the 69th IEEE International Electron Devices Meeting (IEDM) in San Francisco, showcasing a Gate-All-Around (GAA) technology applicable to cutting-edge 3nm chips.

According to an article from South China Morning Post, while CXMT has not yet released sample products, the evidence of the company’s next-generation memory production has caught the attention of industry analysts. This is noteworthy because the design of such chips typically involves technology subject to U.S. export restrictions.

Frederick Chen, a memory expert at Winbond Electronics, a Taiwan-based company, said the evidence of progress by CXMT is “impressive”, as it shows that the Chinese company is not far away from state-of-the-art research and products. “It’s significant because Samsung Electronics is trying to do the same.” Chen said.

Regarding this matter, CXMT has maintained a relatively low profile. Reportedly, in a statement to the South China Morning Post on Wednesday, CXMT stated that the paper “describes fundamental research related to DRAM structure and the feasibility of 4F2 design” and “it has nothing to do with CXMT’s current production processes.” This may have implied that the conceptual design is still distant from becoming a market-ready product.

“Any accusation that CXMT is violating US sanctions or export controls is completely inaccurate,” the company’s export control experts said. “We firmly believe that the free flow of ideas that IEDM seeks to foster is essential for the industry’s innovation and development.”

At the end of this November, CXMT released China’s first LPDDR5 chip, marking the entry of Chinese manufacturers into the DDR5 competition and narrowing the technological gap with leading memory suppliers such as South Korea’s Samsung and SK Hynix.

(Photo credit: CXMT)

On November 28, CXMT made a highlight in the Chinese market by unveiling its latest DRAM LPDDR5. It becomes the first company in China to self-develop and manufacture such DRAMs. CXMT said it has already received validation from major Chinese smartphone brands like Xiaomi and Transsion, signaling plans for swift market commercialization.

This launch not only improves the quality and cost-effectiveness of applications in personal and business sectors but also accelerates the industrialization of the Chinese DRAM industry, positioning CXMT at the forefront of the LPDDR5 era.

Latest Developments in CXMT’s LPDDR5 Strategy

The “LP” in LPDDR stands for Low Power, representing a type of Synchronous Dynamic Random Access Memory (SDRAM) product with lower power consumption compared to DDR. The JEDEC(Solid State Technology Association) categorizes DRAM into three kinds based on different application needs: Standard DDR, LPDDR, and GDDR. DDR is primarily used in servers and PCs, LPDDR in mobile phones and consumer electronics, and GDDR in image processing.

LPDDR5, the fifth generation of low-power double data rate synchronous dynamic random access memory, is the latest focus for CXMT. The company officially launched its LPDDR5 series, including 12Gb LPDDR5 chips, 12GB LPDDR5 chips with package on package (PoP) packaging, and 6GB LPDDR5 chips with die stacking chip (DSC) packaging.

CXMT’s LPDDR5 chips incorporate robust RAS (Reliability, Availability, and Serviceability) features, utilizing on-die error correction code (ECC) technology for real-time error correction, minimizing system failures, ensuring data security, and enhancing stability.

International Memory Giants Vying for Market Share

In September 2023, Samsung announced the development of a series of Low-Power Compressed Additional Memory Modules (LPCAMM), utilizing LPDDR5X memory. During the “2023 Investor Forum” held in Hong Kong in November, Samsung revealed plans to prepare new memory solutions for the automotive sector, including the new LPDDR5X.

SK Hynix officially supplied customers with 16GB capacity LPDDR5T (Low Power Double Data Rate 5 Turbo) products in November, marking the fastest mobile DRAM product with a transmission speed of up to 9.6Gbps.

Micron introduced LPDDR5X DRAM in 2022, with its LPDDR5X-9600 utilizing the latest 1β process technology. With a maximum capacity of 16GB, its speed is 12% higher than the previously fastest LPDDR5X-8533.

Promising Future for LPDDR5 Market

From the current DRAM market share perspective, TrendForce’s statistics on industry revenue from the second quarter show that Samsung has a market share of 39.6%, SK Hynix has 30.1%, and Micron (25.8%), together accounting for over 95% of the market share. Including Nanya Technology (2%) and Winbond Electronics (0.9%), the top five companies account for 98.4%.

Although industry points out that, compared to global giants, China-produced LPDDR5 currently has certain gaps in terms of capacity, speed, and other aspects, it is essential to note that LPDDR5 is trending towards becoming the mainstream in smartphone products. CXMT’s entry into this field coincides with the boom in LPDDR5 development.

TrendForce’s recent research on LPDDR indicates that LPDDR4X remains predominant in the mainstream market, with LPDDR5(X) focus on the high-end market for smartphones. However, with the introduction of Intel’s new Alder lake platform, LPDDR5(X) is gaining prominence in the laptop sector. It is estimated that the market share of LPDDR5(X) will exceed 25% in 2023.

Explore more

• Q4 DRAM Contract Prices Set to Rise, with Estimated Quarterly Increase of 3-8%, Says TrendForce
• [News] CXMT Launches First Domestic LPDDR5, Collaborating with Industry Partners for Market Expansion