TECH NEWS – Chinese memory manufacturers may catch up to the big three in DDR5 production, but this is unlikely to lower prices.

As the memory crisis continues, Chinese manufacturers are speeding up their DRAM and module development plans, quickly catching up to the big three: Samsung, SK Hynix, and Micron. The three major companies have so far been unable to resolve supply issues, despite investing heavily in new DRAM manufacturing plants. Chinese memory module manufacturers are accelerating the launch of consumer and enterprise storage products powered by domestic DDR5 chips. Breakthroughs by ChangXin Memory Technologies (CXMT), the country’s leading memory module manufacturer, are filtering through to the supply chain.

Other leading Chinese memory manufacturers, such as Jiahe Jinwei, have recently launched Power Sniper-based DDR5 RDIMM memory modules offering 64 GB of capacity at 5,600 MT/s. This marks a step forward for Chinese AI companies seeking to expand their capacities. The same company offers DDR5 memory to meet domestic consumer demand. As production increases starting in 2024, the quality of these modules will improve. CXMT has unveiled 8,000 MT/s DRAM modules with capacities of 16 and 24 Gb. Although 32 Gb DRAM has appeared in the consumer segment, it is expensive. China is therefore relying on domestically produced DRAM and memory to avoid problems caused by external factors, such as tariffs, supply constraints, and shipping costs.

The U.S. government has lifted restrictions on CXMT and YMTC due to worsening supply difficulties in the global memory industry ecosystem. This paves the way for an influx of Chinese DRAM and DDR5 memory products into the United States, the European Union, and other major markets. These products may be priced lower than standard DDR5 modules. Samsung’s discontinuation of older LPDDR standards, key components for entry-level smartphones and PCs, has allowed Chinese DRAM manufacturers to increase their LPDDR4 production. This has generated significant revenue for them over the past few months.

Both CXMT and YMTC are investing in their “Epic Expansion” plan, through which they plan to allocate billions of dollars to expand existing manufacturing capacity and prepare for future factories. Currently, CXMT holds approximately 10% of the global market share. However, based on its aggressive production cycles, CXMT could gain an even larger market share in the near future.

Source: WCCFTech, SCMP