China’s CXMT 'Myth': What Was the Decisive Blow That Made It Possible?
China’s ChangXin Memory Technologies (CXMT) is continuing its rapid growth, shaking the ‘three-power (Samsung Electronics, SK hynix, Micron) cartel’ of the global memory semiconductor market. CXMT, which was a latecomer established in 2016, has recently raised its market share to the 8% level in the
ChangXin Memory Technologies (CXMT) has recently made significant strides in the global memory semiconductor market, solidifying its 4th place position in the DRAM market with a 8% market share. The secret behind CXMT's rapid growth lies in three decisive factors: securing original patents from a bankrupt global company, unconventional financial support from the Chinese government, and systematic technology leakage and talent poaching targeting Korean semiconductor companies.
The bankruptcy of Germany's Qimonda, once a leading European memory semiconductor company, provided CXMT with a significant advantage. In 2009, Qimonda filed for bankruptcy, and the Chinese government seized the opportunity to secure Qimonda's original DRAM licenses and patents, along with 2.8 terabytes of core technology documents and design data from Europe.
Additionally, CXMT acquired Qimonda's 46-nanometer buried wordline (BWL) technology, which significantly shortened the time required for independent DRAM development.
The Chinese government's massive financial support played a crucial role in CXMT's success. As a joint venture between the local Hefei government and state capital, CXMT received over 2.6 trillion won in initial funding. Despite US export regulations on semiconductor equipment, China's government continuously invested trillions of won through state-run funds, ensuring wafer production capacity and securing a market share in the general-purpose DRAM market.
However, the most critical factor in CXMT's growth was systematic technology leakage and talent poaching targeting Korean semiconductor companies. CXMT actively scouted core personnel from Samsung Electronics and SK hynix, offering unconventional compensation packages and employment through disguised companies. A former Samsung researcher leaked vital 10-nanometer class DRAM process information, including the Process Recipe Plan (PRP) data, which was copied onto 12 pages of notebooks.
This leaked information allowed CXMT to mass-produce 10-nanometer class DRAM and become the first in China and the 4th in the world to do so. The financial losses suffered by Samsung Electronics due to this incident are estimated to reach trillions of won.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
