As global memory manufacturers race to advance DDR5 technology, a dispute has emerged over China's semiconductor capabilities. Zol.com.cn reports that Changxin Memory Technologies (CXMT), China's leading DRAM manufacturer, claims to have achieved an 80% yield rate in its DDR5 mass production, matching the 80-90% yields of industry leaders Samsung Electronics and SK Hynix. However, Businesskorea contests this assertion, stating CXMT's actual DDR5 yield hovers between 10-20%, raising doubts about the Chinese media's figures.
Equipment limitations hamper progress
According to Sedaily.com, semiconductor equipment leader ASML demonstrated its next-generation High-NA EUV lithography tools at the 2024 International Electron Devices Meeting (IEDM) in the US. The company emphasized that implementing these advanced tools in DRAM production could reduce manufacturing costs by up to 30%.
However, since 2019, CXMT and other Chinese semiconductor companies have been unable to access EUV tools, widening their technological gap. Experts estimate CXMT's DDR5 yield remains at 10-20% due to these restrictions. ASML's CEO Christopher Fokker noted that China's semiconductor technology lags global standards by 10-15 years in advanced manufacturing sectors.
Despite reports of China's progress in localizing semiconductor components through accelerated material and equipment development, industry analysts maintain that poor productivity and low yields continue to compromise its cost competitiveness.
A source familiar with the matter revealed, "While the equipment in Chinese semiconductor facilities may seem US-made, most replacement parts used for maintenance are locally produced replicas."
Geopolitical headwinds intensify
The upcoming Trump administration is expected to implement stricter export controls, increased tariffs, and tighter restrictions on semiconductor equipment exports to impede China's DRAM industry. Industry observers note that while CXMT avoided sanctions under the Biden administration, it may face renewed scrutiny under Trump's leadership.
CXMT's product portfolio includes DDR4, LPDDR4, and LPDDR4X series, reportedly manufactured using a 19nm process. In November 2023, the company launched LPDDR5, marking its entry into the DDR5 market and challenging global leaders Samsung, SK Hynix, and Micron.
Ki-hyun Ahn, Executive Director of the Korea Semiconductor Industry Association (KSIA), advised Samsung to concentrate on markets where CXMT currently lacks competitive strength. He emphasized the importance of South Korean companies accelerating their transition to fifth-generation high-bandwidth memory (HBM3E) and sixth-generation (HBM4) technologies to maintain their market leadership.
Domestic module makers embrace Chinese chips
On December 17, 2024, Chinese memory manufacturers KingBank and Gloway introduced 32GB DDR5 modules for PCs and servers, marketed specifically as "featuring China-made DDR5 chips."
While KingBank and Gloway have not named their suppliers, documentation reviewed by UDN and LTN identifies CXMT as the chip manufacturer. According to industry sources, CXMT is actively approaching potential clients, claiming an 80% DDR5 yield rate comparable to South Korean leaders' 80-90%. However, South Korean media reports suggest CXMT's actual yield remains around 20%, limited by outdated equipment and potential US sanctions.
