According to Reuters, sources familiar with the matter say CXMT, China's largest DRAM manufacturer, is preparing to enter the NAND flash memory market. This would put CXMT in direct competition with global leaders like Samsung as well as domestic rival YMTC.
CXMT reportedly plans to establish a NAND flash memory research-and-development production line at its new plant in Beijing. The company has also set up a research institute in the Chinese capital, with NAND development listed among its ongoing projects. However, it's not yet clear when the R&D line will begin operating, or whether CXMT intends to move beyond research and trial production into full commercial manufacturing.
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CXMT has already discussed its NAND ambitions with potential customers, including a newly established startup that intends to buy CXMT's NAND chips for storage products used in AI systems and supercomputers, according to one source.
The move comes amid a global memory shortage driven largely by surging demand from AI servers, one that industry executives expect to persist through at least 2027. SK hynix CEO Kwak Noh-jung said in July that 2027 could be the industry's worst year yet from a supply standpoint.
CXMT and YMTC are often referred to in China as the "twin stars" of the country's memory industry, having largely operated in separate lanes until now, with CXMT dominating domestic DRAM production and YMTC leading domestic NAND manufacturing. Reuters reported in April that YMTC had sent low-power DRAM samples to customers as it considered entering CXMT's core market.
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Despite lagging larger international rivals and leaning more heavily on lower-priced products, both Chinese firms have gained pricing leverage with domestic customers amid tight global supply, in some cases charging more than their foreign competitors. Samsung remained the world's largest NAND supplier by revenue in the second quarter with a 29.3% share, followed by SK hynix and Micron.
