ChangXin Memory Technologies, China's largest DRAM maker, plans to begin producing HBM3E high-bandwidth memory for AI processors even though its yields sit at roughly 20% to 30%, according to two people with knowledge of the plans. SK hynix, the HBM market leader, is estimated to achieve yields of about 70% on the same class of chip.
CXMT expects to begin limited production within the next two months, one of the people said. The company has already sent HBM3E samples to several Chinese AI chip designers in two versions: a standard design and an updated one intended to improve yields.
The push targets a supply bottleneck. Chinese AI chipmakers have struggled to secure enough advanced memory to scale output, and Washington tightened export controls on certain advanced HBM products bound for China in December 2024. Chinese buyers reportedly pay several times more for HBM obtained through unofficial channels.
Key facts
- 01CXMT plans to start HBM3E production with yields of roughly 20% to 30%, per two people familiar with the plans.
- 02SK hynix is estimated to achieve HBM3E yields of about 70%.
- 03Limited CXMT production is expected within the next two months, according to one person.
- 04CXMT held 10% of global DRAM revenue in Q2, ranking fourth, per Counterpoint Research.
- 05SK hynix held 50% of Q2 HBM revenue, Samsung 33% and Micron 18%.
Low yields carry a cost. With as little as 20% of its chips usable, CXMT must discard or rework many of them, and its HBM3E is expected to be priced above comparable overseas products. In testing, CXMT's HBM3E performed closer to SK hynix's previous-generation HBM3 than to SK hynix's HBM3E, the people said.
Memory costs are already moving prices across China's AI chip sector. Huawei, Cambricon, MetaX and Iluvatar CoreX raised prices on current and next-generation AI chips by 20% to 50%, citing memory costs, according to reporting last month.
CXMT began developing HBM internally as early as 2024. In conventional DRAM, it held 10% of global revenue in the second quarter, making it the fourth-largest supplier, according to Counterpoint Research.
The HBM market remains concentrated among three suppliers. SK hynix held 50% of global HBM revenue in the second quarter, Samsung 33% and Micron 18%, with most of that revenue coming from HBM3E, Counterpoint said. Samsung said in July that it had expanded HBM4 sales and shipped HBM4E samples to major customers, which leaves CXMT at least one generation behind in commercial HBM production.
CXMT did not respond to a request for comment, and SK hynix did not immediately respond to a request for comment on the yield estimate.
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