China’s leading memory chip manufacturer, ChangXin Memory Technologies (CXMT), has reportedly started mass production of DDR5, a cutting-edge product at the forefront of South Korea’s semiconductor industry. This marks a significant leap for CXMT, which had previously focused on older-generation DRAM due to technological limitations.
While it took China six years to match South Korea’s production of DDR4, CXMT has transitioned to DDR5 in just four years since its South Korean debut. The accelerated progress underscores China’s rapid advancements in memory semiconductor technology and raises concerns for industry leaders Samsung Electronics and SK Hynix, which may need to rethink their strategies.
“If CXMT aggressively pushes low-cost DRAM, including advanced products, it could pose a serious threat to Samsung and SK Hynix, particularly in the Chinese market,” a semiconductor industry official said.
On Dec. 17, Chinese storage manufacturers KingBank and Gloway unveiled DDR5 products with 32GB capacities. These companies assemble DRAM chips into modules for use in PCs and servers, promoting them as containing “China-made DDR5 chips.”
Although the manufacturers did not disclose their supplier, online product documentation identifies CXMT as the chipmaker. Industry insiders confirm that CXMT has begun reaching out to potential clients, touting a yield rate of approximately 80%—close to the 80–90% range achieved by South Korean competitors.
DDR5, introduced by SK Hynix in 2020, offers four times the data capacity and double the processing speed of its predecessor, DDR4. It is widely used in desktops and large-scale servers and is considered a high-value product alongside high-bandwidth memory (HBM) in the AI era.
Despite CXMT’s progress, experts say its DDR5 performance still lags behind products from Samsung and SK Hynix. South Korean manufacturers utilize extreme ultraviolet (EUV) lithography to etch finer circuits, reducing power consumption and boosting storage capacity. U.S. export restrictions prevent Chinese companies from acquiring EUV technology, forcing them to rely on older manufacturing equipment.
“CXMT is likely using legacy equipment to produce DDR5, and large-scale mass production has likely not been achieved yet,” an industry insider said.
South Korea maintains a commanding position in the global DRAM market, holding a combined share of over 75% in the third quarter of 2024—Samsung accounts for 41.1%, SK Hynix 34.4%, and U.S.-based Micron 22.2%. However, CXMT’s entry into DDR5 mass production could disrupt the market, especially in China, where AI server and PC manufacturers may pivot to domestic memory. This shift could intensify challenges for South Korean firms already contending with falling prices in older semiconductor categories.
While immediate market share impacts appear limited, South Korean companies are monitoring the situation closely. “We are keeping a close eye on developments in the Chinese market,” a South Korean semiconductor official said.
Analysts also see geopolitical undertones in China’s rapid unveiling of DDR5 production, interpreting it as an effort to demonstrate technological resilience amid sweeping U.S. sanctions. Although CXMT reportedly accounts for 12% of global DRAM production by volume, its revenue-based market share remains negligible, reflecting weak sales performance.
“Chinese companies are not transparent about their operations, so the reliability of their claims should be scrutinized,” said Jeon Byung-seo, head of the China Economic and Financial Research Institute.
