Chinese Memory Manufacturer Likely to Discontinue DDR4 Production as Per Directive from Beijing
Unleashing the Future: ChangXin Memory Technologies Shifts Focus Away from DDR4 and Towards HBM and DDR5
Chinese DRAM powerhouse, ChangXin Memory Technologies (CXMT), is readying itself for an industry shake-up by planning to phase out DDR4 memory production for servers and PCs by mid-2025. According to Digitimes, this sudden change comes as a response to directives from the Chinese Communist Party (CCP), with Beijing rallying for China to dominate the global AI and cloud infrastructure landscape. In line with this push, CXMT is reportedly focusing on High-Bandwidth Memory (HBM) technology, aiming for HBM3 chip validation by the end of this year.
This unexpected announcement left many in the industry on their toes, particularly as CXMT was just ramping up its DDR4 memory production in late 2024. Given the increased capacity combined with aggressive pricing strategies, industry leaders such as Micron, Samsung, and SK hynix are reportedly planning to halt DDR3 and DDR4 chip production by late 2025.
As the Chinese government pours resources into AI to challenge the U.S. on technological dominance, it is anticipated that local tech giants such as CXMT will follow suit. Analysts predict CXMT could issue an end-of-life notice for its DDR4 products as early as the third quarter of 2023, despite the sudden depletion of DDR4 supply. Prices for some 8GB chips have soared by 150% due to the scarcity.
The overall market is gearing up for DDR5 production to cater to the demands of new devices, but a few DDR4 manufacturing lines will persist. DigiTimes Asia reports that CXMT intends to continue production for GigaDevice to meet consumer memory demand, while Samsung and SK hynix will continue production using 1z-nm nodes, forgoing the need for more advanced EUV tools, which are better utilized for newer chip production.
Despite CXMT's recent success with DDR4 memory, its DDR5 chips face ongoing issues. Reports suggest that some of its latest samples have experienced instability above 60 degrees Celsius, which is 25 degrees below the operating temperatures of Samsung chips. Concerns about performance in sub-zero temperatures have also been raised. However, these potential issues are unlikely to impact most users.
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Insights into the Switch from DDR4 to HBM and DDR5:
The movement away from DDR4 and towards HBM and DDR5 is chiefly influenced by a combination of government directives and technology advancements. The Chinese government aims to improve China's semiconductor capabilities, reducing reliance on foreign technologies, while the adoption of newer memory technologies aligns with market pressures and an industry trend towards incorporating high-performance memory solutions to power next-generation server, PC, and AI applications.
Technology giants, such as ChangXin Memory Technologies (CXMT), are shifting their focus from data-and-cloud-computing technologies like DDR4 towards High-Bandwidth Memory (HBM) and DDR5, following government directives and technological advancements. In response to China's push to dominate the global AI and cloud infrastructure landscape, CXMT is reportedly prioritizing HBM technology, aiming for HBM3 chip validation this year. This transition exemplifies the industry's commitment to incorporating high-performance memory solutions to fuel next-generation server, PC, and AI applications.
