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Chinese Company Start Mass Production of DRAM

The Chinese government has spent billions of U.S. dollars into the country’s domestic memory industry with the target of lowering dependence on imports. However, Chinese DRAM makers have an extended method to go before they can rival seasoned huge names, corresponding to Samsung, SK Hynix, or Micron. Based on TrendForce, Samsung, SK Hynix and Micron have been the key chipmakers in the DRAM market in Q2, along with 45.7%, 28.7%, and 20.5% market share, respectively. Collectively, they owned 94.9% of the DRAM pie.

ChangXin Memory Technologies goes all in not to fail Beijing’s expectations. The semiconductor company has reportedly invested $21.1 billion into the DRAM project along with the $2.5 billion invested in research and development. ChangXin Memory Technologies has estimated a manufacturing capacity up to 120,000 wafers monthly in its initial phase. It hopes to deliver them earlier than the year ends.

From an engineering standpoint, ChangXin Memory Technologies has some catching up to do. The Chinese company’s DRAM chip allegedly still depends on the 18nm manufacturing process, while its competitors have already superior to the 16nm plus 12nm process nodes. ChangXin Memory Technologies’ DRAM design took motivation from Qimonda’s technology. However, the firm has made certain modifications to the design to scale back the impact of U.S. technology. Fujian Jinhua Integrated Circuit, one among ChangXin Memory Technologies’ comrades, reportedly had to cease production, as a result of U.S. preventing the Chinese fab from obtaining U.S. components.

ChangXin Memory Technologies’ path into the market is a captivating movement that might lightly shake up the market. If the fab can close the technological gap and increase production, it might see DRAM costs falling even more in a couple of years.