Samsung Leads CXMT by Up to Seven Years in DRAM Technology
An analysis suggests that Samsung Electronics holds a lead of up to seven years over China’s Changxin Memory Technologies (CXMT) in DRAM process technology, based on mass production timelines. According to the assessment, market concerns over China’s technological catch-up have been excessively refl
According to an analysis, Samsung Electronics maintains a significant technological edge over China's Changxin Memory Technologies (CXMT) in the realm of DRAM process technology, potentially by up to seven years. In a report published on October 15, Kim Dong-won, a researcher at KB Securities, highlighted investor concerns over Samsung's share price being overly influenced by the perception that China could soon close the technological gap.
The analyst urged investors to concentrate on Samsung's rapid technological innovation and the industry's high barriers to entry.
Samsung started mass production of the 1z process, CXMT's primary technology, in September 2019, whereas CXMT only commenced mass production of the same process in September 2026, roughly five years later. The research firm also noted that CXMT's recently introduced next-generation technology, such as its 4F²² DRAM architecture, may struggle to translate these advances into substantial market share.
This is primarily due to the necessity of not only possessing competitive performance, yields, and costs but also earning customer qualifications and demonstrating high-volume manufacturing capabilities.
Samsung had already unveiled pertinent technology in 2023 through the implementation of vertical-channel transistors for 4F²² DRAM; however, a commercial market has not yet materialized due to insufficient demand. This analysis suggests that advancements by Chinese manufacturers are unlikely to pose an immediate competitive threat to Samsung.
The core competitiveness of the memory semiconductor industry lies not solely in the development of new processes, but also in securing stable yields and the ability to sustain high-volume production.
While CXMT continues to focus on refining its existing processes, Samsung is concentrating on advancing next-generation leading-edge processes and high-bandwidth memory (HBM) technology. Given Samsung's accumulated experience in mass-producing advanced processes and securing customer qualifications, the research firm projects that China will have a limited capability to significantly narrow the technology gap.
Samsung's stock has declined by 16% thus far in October as concerns over China's technological catch-up have negatively impacted the share price. The company's current price-to-earnings ratio (PER) is approximately 3 times, a level viewed as historically undervalued by securities analysts. Kim Dong-won also anticipated potential shareholder returns through increased dividends and share cancellations.
He emphasized Samsung's potential for heightened corporate value, considering the current share price correction an opportunity for investors to boost their exposure to Samsung Electronics.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
