Copyright Wccftech
China's largest memory manufacturer has reportedly achieved a significant breakthrough by shipping HBM3 samples to domestic AI giants, such as Huawei, in an effort to resolve the HBM crisis. Beijing has been facing an HBM supply bottleneck for several years, which has proven to be a barrier for firms like Huawei to scale up AI chip production. China has been reliant on pre-export control HBM inventory for several years now, and until recently, domestic firms were unable to develop sufficient technology and production capacities. Based on a report by DigiTimes, it is revealed that CXMT has managed to supply crucial HBM3 samples to Huawei, and this move is called a 'precursor' to large-scale manufacturing, which is expected to occur 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 being behind in terms of technological advancements, China's CXMT still holds a key position in the overall DRAM output of the industry, as the firm has sufficient production lines in place. The firm's DRAM capacity is rising steadily this year, and is expected to reach 230,000 to 280,000 wafers per month across its facilities in China. Having adequate capacity is a necessity for CXMT to ensure that its pursuit of domestic HBM technology turns out successful, since AI giants like Huawei and Cambricon are in dire need of a breakthrough. CXMT is still behind the likes of SK hynix, as the firm plans to bring HBM3E to China by 2027, around the time when HBM4 is expected to become the mainstream standard. Not just this, but CXMT has also become a leading entity with consumer memory, as the firm has initiated production of DDR5 modules, with yield rates claimed to be around 80%. And more importantly, the efforts of the Chinese memory giants are to be catalyzed by a potential IPO in the first quarter of 2026. After chip production, HBM was seen as a huge barrier for China's AI market, and CXMT intends to cater to this gap by bringing production of high-end technologies to domestic grounds. This clearly shows Beijing's intent to advance relentlessly in the world of AI computation, and this comes at a time when the nation is moving away from adopting Western tech stacks.
