Chinese DRAM maker CXMT has turned down an Apple request for supply on terms cheaper than those offered by Micron, Samsung and SK hynix. A Taiwanese server maker seeking DDR5 chips was also refused. The refusal is not about product quality but a strategic choice to prioritise domestic Chinese demand.
According to reports, CXMT already supplies local partners such as Xiaomi and has shown it can compete with the Korean and American giants. Its current bottleneck is production capacity, which cannot keep pace with domestic demand. Accepting discounts for a global client would mean diverting volumes from Chinese customers.
Image: sourcememorychips.com — https://www.sourcememorychips.com/products/cxdr4e8bm-cs-a
According to analyst Wu Chin-jung, former general manager of Microdrive Technology, this rigidity is part of a wider plan for Chinese self-sufficiency in DRAM. Yole's Huang Mao-yuan believes meeting domestic demand could take a decade, with the ultimate aim that companies like Huawei and Xiaomi no longer depend on Samsung or SK hynix.
The weakest point remains HBM development. CXMT is behind, and US export controls prevent it from obtaining EUV machines, which are key to yields and packaging. The company has reportedly cut its HBM supply by 25 percent.
Technologically, CXMT remains two generations behind the three major makers in HBM. Catching up will not be easy, and for now the priority is serving Chinese customers.
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