China's largest DRAM maker, ChangXin Memory Technologies (CXMT), is preparing to start limited production of advanced memory chips for AI processors, even though its manufacturing yields remain poor. Reuters reports the exclusive, citing anonymous sources.
The decision underlines how urgent the shortage of AI memory chips is for Beijing, which is pushing to build domestic alternatives to Nvidia's products. For a company still struggling with yields, starting production means accepting higher costs per working chip, but staying out of the AI memory market would cost more.
Image: qcc.com — https://www.qcc.com/brandDetail/7de06c7664bcb0bae8699464c98ed812.html
On the technical side, the gap remains wide. CXMT produces HBM3E to close the AI memory gap had already shown the company working on high-bandwidth memory, but SemiAnalysis estimates put its yields far below the more than 90% it has reached on standard DDR5. Samsung, SK Hynix and Micron have already moved to mass production of HBM4, and CXMT is one generation behind.
Overall capacity is growing. CXMT adds over 100,000 DRAM wafers a month in a year projects an increase of more than 100,000 wafers a month within a year, with new plants in Beijing, Shanghai and Hefei. The sharpest rise, however, is expected only after 2027, and the new output will mostly serve Chinese demand. This is also reflected in CXMT's refusal of Apple's discount request, which favoured Chinese customers.
Image: The Chosun Ilbo — https://www.chosun.com/english/industry-en/2025/11/24/BA5A5VKLABAGZA33I7BRUGUTJE/
For Western markets, the question remains open. The US Senate has asked Apple to drop CXMT and YMTC memory chips, as reported in the US Senate's ultimatum to Apple, and export restrictions on EUV machines keep CXMT from closing the gap in HBM. The limited output starting in the coming months will show how far the company can turn its growth into chips usable for AI.
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