China’s CXMT hits a DRAM production ceiling as global memory prices keep climbing

ChangXin Memory Technologies (CXMT) was reported by Omdia to have peaked at approximately 240,000 wafers monthly at the end of the previous year, but the shortage in memory found worldwide that prompted its expansion continues pushing prices up.

A hard ceiling, not a temporary lull

Those looking for increased Chinese supply to ease market conditions should think again, as statistics show the exact opposite. CXMT has been able to ramp up its wafer output to double that of 2024, but this operation has slowed down considerably. According to industry insiders quoted by ChosunBiz, production is expected to remain at the same level throughout the year.

Two issues have prevented it from moving forward: Washington’s restrictions on export of sophisticated chip manufacturing devices as well as its yield being still significantly lagging behind the leaders in the industry. According to Counterpoint Research, CXMT’s primary first-generation 10-nanometer DRAM technology still yields 42% lower than Samsung and SK Hynix have been able to achieve, keeping CXMT’s yield close to 50%.

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