China’s CXMT narrows gap with SK Hynix and Samsung in smartphone memory
The chipmaker completed a blockbuster initial public offering in Shanghai in July.
Beijing's state-backed semiconductor firm, CXMT, is set to produce smartphone memory chips that match the industry's most advanced designs, indicating China's rapid progress in a field crucial for AI deployment. The company, which the Pentagon has blacklisted due to alleged ties to China's military and state apparatus, plans to manufacture these advanced low-power memory chips in limited quantities by the end of the year after successful prototype testing. Mass production will follow later, according to sources familiar with the matter.
Achieving this milestone would represent a significant breakthrough in Beijing's decades-long quest for technological self-sufficiency, showcasing China's advancements in reducing dependence on foreign components. If successful, CXMT could compete with industry leaders such as Micron Technology, SK Hynix, and Samsung Electronics, capitalizing on a global semiconductor shortage that has become a significant hindrance for major consumer electronics brands like Apple.
The company's upcoming chip, sixth-generation low-power double-data-rate memory (LPDDR6), offers faster data-transfer speeds and superior power efficiency compared to its predecessors, enabling smartphones and laptops to run AI applications locally. Mastering the production of LPDDR6 chips would likely boost CXMT's revenues, which surged following its IPO in Shanghai in July.
However, while CXMT's new chip falls within the same product category as top industry players, it would still need to scale up production to compete effectively. SK Hynix and Samsung have introduced LPDDR6 chips in March, with SK Hynix claiming a 33% increase in speed and 20% greater power efficiency over LPDDR5X. Samsung is also reportedly working on a similar product.
The surge in demand for memory chips is driven by the ongoing AI boom, as companies like Meta Platforms and Amazon.com reserve production capacity for years, causing severe shortages and price increases. Apple has even raised prices for its Macs, iPads, home devices, and Vision Pro in response. Despite lobbying by Apple executives to procure chips from Chinese manufacturers, including CXMT, US lawmakers have raised concerns about potential reliance on a US adversary for critical components, leading to legislative pushback.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
