China’s primary memory manufacturer has marked a major milestone, delivering HBM3 samples to domestic AI powerhouses like Huawei. This strategic move aims to alleviate the ongoing HBM shortage impacting the tech industry.
The Push for HBM3E and DRAM Expansion
Beijing has encountered significant HBM supply challenges over recent years, severely impacting companies such as Huawei in scaling AI chip production. Reliance on pre-export control HBM inventory had been the norm until domestic firms like CXMT stepped up. Reports suggest CXMT has successfully provided essential HBM3 samples to Huawei, a move hailed as a precursor to large-scale manufacturing anticipated later this year.
Analysts say that while CXMT remains three to four years behind top global players, its progress represents a significant stride toward bolstering China’s semiconductor autonomy and disrupting the long-held dominance of international DRAM leaders.
Despite lagging in tech advancements, CXMT plays a pivotal role in the DRAM industry, maintaining robust production lines. The company’s DRAM output is gradually increasing, projected to reach 230,000 to 280,000 wafers monthly across its Chinese facilities. Having robust capacity is crucial for CXMT’s success in developing domestic HBM technology, especially as AI leaders like Huawei and Cambricon urgently seek breakthroughs.
Future Ambitions and Market Impact
Although still trailing behind competitors like SK hynix, CXMT plans to introduce HBM3E to China by 2027, coinciding with the anticipated mainstream adoption of HBM4. Additionally, CXMT has emerged as a major player in consumer memory, initiating DDR5 module production with yield rates around 80%. This momentum is further supported by a prospective IPO slated for the first quarter of 2026.
Following the hurdles in chip production, HBM emerged as a significant barrier for China’s AI sector. CXMT’s strategy to localize high-end technology production aligns with Beijing’s ambitions to propel the nation’s AI computation capabilities, signaling a shift away from Western technology dependencies.
China’s primary memory manufacturer has marked a major milestone, delivering HBM3 samples to domestic AI powerhouses like Huawei.