CXMT May Beat Samsung and Micron to LPDDR6 RAM Production

Xiaomi's upcoming XRING 03 chipset could potentially position the Xiaomi 18 Fold as one of the first smartphones to incorporate next-generation LPDDR6 RAM. According to recent reports, Chinese memory producer CXMT is set to commence mass production of LPDDR6 chips next month, giving them an early advantage over competitors Samsung, SK hynix, and Micron.

This development follows allegations that Xiaomi has entered into a partnership with CXMT to incorporate LPDDR6 support into its XRING 03 platform. Early indications suggest Xiaomi may reserve CXMT's initial LPDDR6 memory for the upcoming Xiaomi 18 Fold, which is anticipated to compete with devices such as Apple's anticipated iPhone Fold and Samsung's Galaxy Z Fold8.

However, the production volumes are anticipated to remain comparatively low, with a report estimating that XRING 03-powered devices may not exceed approximately 300,000 units in total shipments. This limited production could allow CXMT to manage the supply of memory effectively, despite the inherent challenges associated with manufacturing a new generation of DRAM.

CXMT faces significant obstacles in scaling up production, as the company is subject to U.S. trade restrictions that limit its access to advanced semiconductor manufacturing equipment. Consequently, CXMT reportedly relies on older Deep Ultraviolet (DUV) lithography systems and more intricate multi-patterning methods, which can escalate manufacturing costs while decreasing production yields.

This situation may make it challenging for CXMT to produce LPDDR6 memory at volumes comparable to those of Samsung, SK hynix, or Micron. The XRING 03 is projected to utilize TSMC's 3nm N3P process, suggesting that Xiaomi may encounter fewer hurdles in securing sufficient processor production capacity. Consequently, memory supply may emerge as the more substantial challenge.

Although Xiaomi could potentially opt for LPDDR5X instead, the company might choose LPDDR6 to differentiate the Xiaomi 18 Fold, particularly if the device is launched at a premium price. CXMT's preemptive entry into LPDDR6 production could also assist them in procuring additional customers in China, including Huawei. Nonetheless, the true test will be whether the company can augment production while preserving satisfactory yields.

Samsung, SK hynix, and Micron may quickly catch up once they initiate large-scale LPDDR6 manufacturing.