The global shortage of RAM has led to an increase in prices, especially when it comes to DDR5 and DDR4 modules of higher capacity, which is why part of the users and the market place their hopes in Chinese manufacturers like CXMT and YMTC. The expectation is that Chinese manufacturers and their memory could offer more favorable prices and better availability, but reality shows that such a scenario is not certain, at least not in the near future.
The main problem lies in the production itself. DDR5 memory requires an advanced manufacturing process based on EUV lithography, which China does not currently have access to. CXMT therefore uses alternative methods such as SAQP techniques, aggressive chip selection and higher XMP voltages. While this allows for fully functional modules, such an approach leads to significantly larger multi-chip memory modules, as much as 40 to 50 percent larger compared to solutions from SK hynix. The consequence is higher production costs per chip and serious limitations when moving to mass production.
Why Chinese memory can’t quickly become a global solution
An additional problem is the process of adopting memory in the industry, which does not only involve the purchase of modules, but also long-term design validation, testing and integration into ready-made platforms. CXMT does not yet have enough experience or infrastructure in that segment. Their current capacities are mainly aimed at the domestic market, and even in the case of expansion of production, large customers like Apple, HP and Dell would not consider the purchase without several years of tests.
Claims of significantly lower prices for Chinese RAM modules have also not been confirmed. According to DigiTimes, CXMT is considering price matching with Korean manufacturers, which means that the price advantage is virtually non-existent. The situation is similar with YMTC, which invests in DRAM production, but without indications of aggressive price reduction.
Finally, regulatory hurdles further limit the expansion of Chinese storage. YMTC is on the US blacklist, while CXMT is restricted by other legal mechanisms, making placement in Western markets extremely complex. Due to a combination of technological limitations, lack of production volume and political barriers, Chinese manufacturers are currently still unable to present a realistic solution to the global RAM memory shortage, writes Wccftech.