ChangXin Memory Technologies (CXMT), a Chinese memory manufacturer, has reportedly begun producing DDR5 memory chips. This development could have significant implications for the global DRAM market.
Multiple reports indicate that third-party memory module makers in China have started selling DDR5 DRAM sticks based on CXMT's chips. While CXMT hasn't officially announced its DDR5 production, this suggests they are mass-producing enough chips for the open market.
Production and Technology
CXMT's DDR5 is believed to be produced using their G3 process, which has a line width of 17.5nm. Experts estimate a production yield of around 80%. It’s worth noting that previous reports pointed to a 17nm-class DRAM process. Analyst firm TechInsights suggests that CXMT may be utilizing its G4 fabrication technology to manufacture DDR5.
Market Impact
- Potential for Lower Prices: CXMT's entry into the DDR5 market could lead to lower prices if they choose to undercut existing competitors to gain market share.
- Increased Competition: If CXMT gains market share in China, major DRAM manufacturers like Micron, Samsung, and SK hynix would likely redirect their output to other markets, increasing competition and driving down prices.
- Challenging the Oligopoly: The emergence of a Chinese DRAM maker could disrupt the current DRAM market dominated by a few key players, creating more competition.
Early Products
KingBank and Gloway have recently begun selling 32GB DDR5 modules using what is labeled as 'domestic' memory ICs, strongly indicating the use of CXMT chips.
Uncertainties Remain
While CXMT's production capacity looks substantial, it's unclear how much of it will be available for the open market, as China's priority is often to meet local demand, especially from government-controlled entities. Also, U.S. and Dutch sanctions could hinder CXMT's efforts to ramp up production and gain global market share.
