The two Chinese firms are gaining market share in DRAM and NAND, although high-bandwidth memory remains dominated by global leaders
Howard Liu in Beijing
Published: 3:00pm, 25 Jun 2026Updated: 3:14pm, 25 Jun 2026
As US chip giant Micron Technology posted better-than-expected quarterly results and offered upbeat guidance, easing market concerns over a potential AI bubble, it also acknowledged the growing capabilities and market share of China’s top memory chipmakers.
When asked about competition from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Corp (YMTC) during an earnings call on Wednesday, Micron chief business officer Sumit Sadana said they had both grown in capability and market share over the years, although the “overwhelming majority” of their output was still sold within China.
The comments provide mainland China’s memory chip industry with global validation at a time when AI infrastructure spending is reshaping a market long known for boom-and-bust cycles.
Micron, one of the world’s three major high-bandwidth memory (HBM) suppliers alongside South Korea’s SK Hynix and Samsung Electronics, reported record fiscal third-quarter results and issued a stronger outlook, citing the rising strategic value of memory in the AI era.
The company reported fiscal third-quarter revenue of US$41.46 billion, up from US$23.86 billion in the previous quarter and US$9.30 billion a year earlier. It forecast record fiscal fourth-quarter revenue of US$50 billion, plus or minus US$1 billion, and said it had signed 16 strategic customer agreements that were expected to improve long-term demand visibility.
“We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints,” Micron chief executive Sanjay Mehrotra said in prepared remarks.
Mainland Chinese suppliers remain behind Micron and its Korean rivals in HBM, the premium stacked memory used in Nvidia and other AI accelerators. But Micron executives also pointed to tight supply outside the HBM space, which presents an opportunity for CXMT as most of its products are conventional LPDDR and DDR DRAM.
In a June report, SemiAnalysis said HBM’s contribution to CXMT’s revenue and earnings was minimal, attributing the company’s recent earnings surge to its exposure to a tight conventional DRAM market.
According to estimates by TrendForce, contract prices for conventional DRAM were expected to rise between 58 and 63 per cent quarter on quarter in the second quarter of 2026, while NAND flash contract prices were forecast to increase between 70 and 75 per cent quarter on quarter. The research firm said DRAM suppliers were shifting more wafer fab capacity to HBM and server-related products, while NAND capacity was tilting towards enterprise solid state drives or SSDs, used in AI servers.
That pricing cycle has already enhanced CXMT’s financial position. Counterpoint data showed that the company’s global DRAM revenue share rose to 8 per cent in the first quarter this year, up from 3 per cent a year earlier.
Documents from CXMT’s planned initial public offering also showed a sharp improvement in profitability. The company reported revenue of 50.8 billion yuan (US$7.47 billion) in the first quarter and net profit of 33 billion yuan, compared with a loss a year earlier. It has guided for first-half revenue of 110 billion yuan to 120 billion yuan and net profit of 66 billion yuan to 75 billion yuan.
YMTC, China’s leading NAND flash maker, is also benefiting from stronger demand for storage used in data centres. Counterpoint data showed its global NAND revenue share rose to 13 per cent in the first quarter of 2026, up from 8 per cent a year earlier.
The broader memory supply shortage is also giving Chinese suppliers a stronger case for expansion. Bernstein said in a May report that Chinese memory chipmakers had “significantly sped up” their capacity expansion plans because of robust demand and ample capital.
www.scmp.com
Howard Liu in Beijing
Published: 3:00pm, 25 Jun 2026Updated: 3:14pm, 25 Jun 2026
As US chip giant Micron Technology posted better-than-expected quarterly results and offered upbeat guidance, easing market concerns over a potential AI bubble, it also acknowledged the growing capabilities and market share of China’s top memory chipmakers.
When asked about competition from ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Corp (YMTC) during an earnings call on Wednesday, Micron chief business officer Sumit Sadana said they had both grown in capability and market share over the years, although the “overwhelming majority” of their output was still sold within China.
The comments provide mainland China’s memory chip industry with global validation at a time when AI infrastructure spending is reshaping a market long known for boom-and-bust cycles.
Micron, one of the world’s three major high-bandwidth memory (HBM) suppliers alongside South Korea’s SK Hynix and Samsung Electronics, reported record fiscal third-quarter results and issued a stronger outlook, citing the rising strategic value of memory in the AI era.
The company reported fiscal third-quarter revenue of US$41.46 billion, up from US$23.86 billion in the previous quarter and US$9.30 billion a year earlier. It forecast record fiscal fourth-quarter revenue of US$50 billion, plus or minus US$1 billion, and said it had signed 16 strategic customer agreements that were expected to improve long-term demand visibility.
“We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints,” Micron chief executive Sanjay Mehrotra said in prepared remarks.
Mainland Chinese suppliers remain behind Micron and its Korean rivals in HBM, the premium stacked memory used in Nvidia and other AI accelerators. But Micron executives also pointed to tight supply outside the HBM space, which presents an opportunity for CXMT as most of its products are conventional LPDDR and DDR DRAM.
In a June report, SemiAnalysis said HBM’s contribution to CXMT’s revenue and earnings was minimal, attributing the company’s recent earnings surge to its exposure to a tight conventional DRAM market.
According to estimates by TrendForce, contract prices for conventional DRAM were expected to rise between 58 and 63 per cent quarter on quarter in the second quarter of 2026, while NAND flash contract prices were forecast to increase between 70 and 75 per cent quarter on quarter. The research firm said DRAM suppliers were shifting more wafer fab capacity to HBM and server-related products, while NAND capacity was tilting towards enterprise solid state drives or SSDs, used in AI servers.
That pricing cycle has already enhanced CXMT’s financial position. Counterpoint data showed that the company’s global DRAM revenue share rose to 8 per cent in the first quarter this year, up from 3 per cent a year earlier.
Documents from CXMT’s planned initial public offering also showed a sharp improvement in profitability. The company reported revenue of 50.8 billion yuan (US$7.47 billion) in the first quarter and net profit of 33 billion yuan, compared with a loss a year earlier. It has guided for first-half revenue of 110 billion yuan to 120 billion yuan and net profit of 66 billion yuan to 75 billion yuan.
YMTC, China’s leading NAND flash maker, is also benefiting from stronger demand for storage used in data centres. Counterpoint data showed its global NAND revenue share rose to 13 per cent in the first quarter of 2026, up from 8 per cent a year earlier.
The broader memory supply shortage is also giving Chinese suppliers a stronger case for expansion. Bernstein said in a May report that Chinese memory chipmakers had “significantly sped up” their capacity expansion plans because of robust demand and ample capital.
Micron posts record revenue on AI surge as China’s memory rivals gain ground
The two Chinese firms are gaining market share in DRAM and NAND, although high-bandwidth memory remains dominated by global leaders.
www.scmp.com