CXMT Achieves 80% Yield in DDR5 Chip Production: Expanding HBM2 Capabilities

CXMT's Exciting Progress in DDR5 Production

CXMT, a prominent Chinese memory chip manufacturer, has made significant strides in the production of DDR5 chips, achieving a remarkable yield rate of 80%. This marks an impressive improvement from the company’s initial yield rates of 50% when production initially started. This achievement builds on their expertise in DDR4, where their yields have reached around 90%. CXMT operates with two main fabrication facilities based in Hefei, China. Fab 1, which is dedicated to DDR4 production, operates on a 19 nm process technology with a production capacity of 100,000 wafers monthly. Meanwhile, Fab 2 focuses on DDR5 production utilizing 17 nm technology, handling 50,000 wafers per month and is projected to enhance yields further to approximately 90% by the end of 2025.

Meeting Competition Challenges

Despite the remarkable improvements in yield rates, CXMT continues to face the stiff competition of technological advancements. Competing entities like Samsung and SK Hynix have already adopted the production of 12 nm DDR5 chips, thus positioning themselves ahead in terms of low power consumption and compact form factors. These advanced technological achievements place pressure on CXMT to bridge the gap and enhance its competitiveness on the international stage. Nonetheless, CXMT maintains a strong foothold domestically, primarily serving Chinese smartphone and computing OEM customers.

Future Outlook and Expansion of Capabilities

Looking to the future, CXMT is eager to expand its production capabilities further. Plans are underway to boost DDR5 and High Bandwidth Memory (HBM) production, with the potential to augment capacity with an additional 50,000 wafers per month at Fab 2 by 2025, contingent on favorable market conditions. Additionally, there is ongoing innovation with High Bandwidth Memory 2 (HBM2) development, with CXMT currently distributing samples to customers and anticipating the transition to low-volume production in mid-2025.

Conclusion

Through strategic advancements in production and technological refinement, CXMT is positioning itself as a formidable player in the memory chip sector. By aiming to overcome current technological disparities with industry leaders and capitalize on domestic market dominance, CXMT is fostering an environment for sustainable growth and innovation. The expansion of DDR5 and HBM technologies signals a promising trajectory for the company and highlights the potential for further contributions to global technological advancements.