Threads
- Chinese DRAM manufacturer CXMT is rapidly gaining market share, posing a significant threat to industry leaders like Samsung and SK Hynix.
- CXMT’s competitive advantage stems from government subsidies, aggressive pricing, and rapid technological advancements.
- The rise of CXMT highlights the increasing dominance of China in the semiconductor industry.
We said it, and it is coming true. China is going like a hypersonic plane for the DDR5 DRAM market, which is still dominated by South Korea and the US, for now. New indications and information coming from various sources paint a truly terrifying picture for the Americans and Koreans since they are going to lose an incredible amount of market share. If the trend continues like this, in a few years, they will literally be swept off the scene.
The threat has a name, some arguments, and some concrete figures that we will put on the table based on the information that is coming from various leakers and foreign media in different countries. The protagonist is CXMT, a company that, 5 years ago, barely had any cutting-edge chip production. However, before the end of this year, it has put DDR5 chips into production ahead of expectations.
China To Flood DDR5 Market With Chips By 2025
Cheap chips, cheap modules, and a massive injection of public money to artificially lower prices below costs where no one can compete without making a loss. China uses its huge population and taxes to pump public money, almost without end, into its leading companies and help the rest. The CEO of the memory chip controller manufacturer Silicon Motion, Wallace Kou, gave some very revealing clues:
“Chinese memory chip giant CXMT’s share of the global DRAM memory chip market will rise to 15% in 2025 from 2% a few years ago as it ramps up mass production of DDR5 DRAM chips. While its LPDDR5 (low-power DDR5 DRAM) will ship in volume in mid-2025.”
CXMT has also increased its production capacity from 70,000 wafer starts per month in 2022 to 120,000 WSPM in 2023 and 200,000 WSPM in 2024. This only shows that China is evolving its semiconductor memory technology at a pace that no one can keep up with. In fact, we have already seen the performance against SK Hynix chips; they are extremely close.
The Gap Has Narrowed To Almost Zero In 2 Years
It is dramatic for the rest. We indeed know that China is not evolving alone. CXMT has thousands of engineers from South Korea working in its factories, who accepted wage and conditions improvements that they could not refuse from the Chinese company. Add to this almost unlimited government subsidies.
This allows for a rock-bottom price for any customer: 10% to 50% cheaper than Samsung and SK Hynix. So, if mass production comes months earlier, if the performance of the chips is almost on par with their rivals, and if they offer prices that are impossible for the rest, it is only a matter of time before they end up destroying their competitors in the market in a matter of two or three years at most and if they continue at this pace.
It should be noted that Samsung, SK Hynix, and Micron already use EUV in their chips. Still, they need more production, more speed, and more efficiency to justify the prices because no one can compete, at the moment, with China on costs, not under these conditions of almost infinite subsidies.
Thank you! Please share your positive feedback. 🔋
How could we improve this post? Please Help us. 😔
[Editor-in-Chief]
Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
Majored in Computer Science
13+ years of Experience as a PC Hardware Reviewer.
8+ years of Experience as an IT Project Manager in the Corporate Sector.
Certified in Google IT Support Specialization.
Admin of PPG, the largest local Community of gamers with 130k+ members.
Sajjad is a passionate and knowledgeable individual with many skills and experience in the tech industry and the gaming community. He is committed to providing honest, in-depth product reviews and analysis and building and maintaining a strong gaming community.
Join Our Community
