DRAM chips: Chinese memory chip company CXMT apparently plans another factory
The world's fourth-largest DRAM manufacturer is continuing its upward trend. After a rapid stock market start, CXMT reportedly wants to use another factory to alleviate bottlenecks in memory chips.
Beijing - The Chinese memory chip company CXMT, which made a stellar stock market debut, is reportedly accelerating its expansion plans with a new factory near Beijing, insiders revealed on Monday. The company aims to produce memory chips in the new plant, where current supply shortages are occurring. The investment amount for the factory has not been disclosed yet.
Building a factory for producing advanced memory components typically costs more than ten billion dollars. Combined with the factories under construction in Shanghai and Hefei, the production capacity is expected to double. CXMT's production capacity could then process 600,000 wafers of semiconductors per month, potentially alleviating existing supply bottlenecks for these products.
The company and Beijing's municipal government have not responded to inquiries about a statement. With a market share of just over eight percent, CXMT is the world's fourth-largest producer of DRAM chips, used as main memory in various electronic devices, from smartphones to data centers. Western market leaders Samsung, SK Hynix from South Korea, and Micron from the United States together control about 90 percent of the market.
China's plan for greater technological independence plays a crucial role in CXMT's plans, and therefore the company is receiving significant support from the government.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
