It is reported that the production capacity of Chuangxin Memory Technology (CXMT), a DRAM company leading the way in China's memory industry, peaked in the fourth quarter of last year and faced limitations. In anticipation of US export restrictions, the Chinese government is also making every effort to internalize semiconductor equipment, but the prevailing analysis is that new expansion will be limited by regulations on advanced semiconductor equipment.
According to data from market research firm Omdia obtained by Chosun Biz on the 12th, CXMT's average monthly wafer (semiconductor disc) production has reached its maximum of 240,000 wafers. CXMT, which has been steadily expanding its production capacity since 2024, is expected to remain in a stagnant period throughout this year, according to key officials.
Currently, CXMT's DRAM production capacity is half that of SK hynix, which ranks second in the industry, and is estimated to be just over one-third of Samsung Electronics. Last year, Samsung Electronics' DRAM production capacity was about 7.6 million, SK hynix's 5.97 million, and Micron's 3.6 million. Last year, CXMT doubled its wafer production from the previous year and has been in the weight class, but from this year, the speed will slow down.
Cha Yong-ho, a researcher at LS Securities, said, "The expansion of CXMT's production capacity is being limited due to the tightening of export controls in the United States. China is also aware of this, and the third phase of investment funds is concentrated on semiconductor equipment," he said, adding, "If China succeeds in internalizing equipment next year, expansion including CXMT's new factory in Shanghai may resume from 2027."
However, the yield of DRAM produced by CXMT is holding back. Although it is growing in size through aggressive capital investment, it is constantly pointed out that the actual production is not up to par. The explanation is that there is a gap between facility capacity and production due to low yields. Although the numerical wafer production capacity is high, the actual shipment share is expected to be lower due to product defects.
According to market research firm Counterpoint Research, as of 2024, the yield of CXMT's flagship process, 1x (10nm-class first-generation) DRAM, is 42% lower than that of the 1a (10nm-class 4th-generation) process of three memory companies, including Samsung Electronics and SK hynix. In the case of Samsung Electronics and SK hynix, the yield of the 1a process is classified as a mature process, but in the case of CXMT, it is still at the level of 50%.
In addition, as the US government is expected to tighten regulations on Chinese semiconductor equipment companies, there is also an analysis that it may be an obstacle to industrial growth. Last month, Reuters reported that U.S. Republican and Democratic lawmakers have introduced a bill that would ban companies that receive subsidies under the Semiconductor Support Act (CHIP ACTS) from purchasing Chinese-made equipment for 10 years.
A semiconductor industry official explained, "Unlike NAND flash, in the case of DRAM, it will take a considerable amount of time for CXMT to introduce advanced processes similar to those of Samsung Electronics and SK hynix due to the complexity of design and process."
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According to data from market research firm Omdia obtained by Chosun Biz on the 12th, CXMT's average monthly wafer (semiconductor disc) production has reached its maximum of 240,000 wafers. CXMT, which has been steadily expanding its production capacity since 2024, is expected to remain in a stagnant period throughout this year, according to key officials.
Currently, CXMT's DRAM production capacity is half that of SK hynix, which ranks second in the industry, and is estimated to be just over one-third of Samsung Electronics. Last year, Samsung Electronics' DRAM production capacity was about 7.6 million, SK hynix's 5.97 million, and Micron's 3.6 million. Last year, CXMT doubled its wafer production from the previous year and has been in the weight class, but from this year, the speed will slow down.
Cha Yong-ho, a researcher at LS Securities, said, "The expansion of CXMT's production capacity is being limited due to the tightening of export controls in the United States. China is also aware of this, and the third phase of investment funds is concentrated on semiconductor equipment," he said, adding, "If China succeeds in internalizing equipment next year, expansion including CXMT's new factory in Shanghai may resume from 2027."
However, the yield of DRAM produced by CXMT is holding back. Although it is growing in size through aggressive capital investment, it is constantly pointed out that the actual production is not up to par. The explanation is that there is a gap between facility capacity and production due to low yields. Although the numerical wafer production capacity is high, the actual shipment share is expected to be lower due to product defects.
According to market research firm Counterpoint Research, as of 2024, the yield of CXMT's flagship process, 1x (10nm-class first-generation) DRAM, is 42% lower than that of the 1a (10nm-class 4th-generation) process of three memory companies, including Samsung Electronics and SK hynix. In the case of Samsung Electronics and SK hynix, the yield of the 1a process is classified as a mature process, but in the case of CXMT, it is still at the level of 50%.
In addition, as the US government is expected to tighten regulations on Chinese semiconductor equipment companies, there is also an analysis that it may be an obstacle to industrial growth. Last month, Reuters reported that U.S. Republican and Democratic lawmakers have introduced a bill that would ban companies that receive subsidies under the Semiconductor Support Act (CHIP ACTS) from purchasing Chinese-made equipment for 10 years.
A semiconductor industry official explained, "Unlike NAND flash, in the case of DRAM, it will take a considerable amount of time for CXMT to introduce advanced processes similar to those of Samsung Electronics and SK hynix due to the complexity of design and process."
中 D램 선봉장 CXMT, 생산능력 한계 도달… “장비 수급 규제로 정체기”
中 D램 선봉장 CXMT, 생산능력 한계 도달 장비 수급 규제로 정체기 CXMT, D램 생산량 SK하이닉스 절반 수준 수율 문제로 실제 점유율은 낮아 美 제재로 반도체 장비 업그레이드 막혀 내년엔 증설 투자 전망
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