Investing.com -- China's largest DRAM maker, ChangXin Memory Technologies (CXMT), plans to begin limited production of advanced memory chips used in artificial intelligence processors despite manufacturing challenges, Reuters reported on Wednesday.
CXMT expects to start producing HBM3E memory within the next two months, even though only a small proportion of its chips are currently meeting specifications, according to the report. The company has sent samples to several domestic AI chip designers as China seeks to reduce its reliance on foreign technology amid US export restrictions.
Reuters reported that CXMT's manufacturing yields are estimated at just 20% to 30%, compared with about 70% at South Korea's SK Hynix, the global leader in high-bandwidth memory (HBM). Low yields make production more expensive because a large share of chips must be discarded or reworked.
Reuters said its report provides new details on production yields and the expected timeline, following an earlier report by The Information on CXMT's HBM3E plans.
HBM is produced by stacking memory chips vertically to enable rapid data transfer to AI processors. It is a crucial component in accelerators used to train and run large language models, making access to the technology increasingly important as Chinese companies develop domestic alternatives to Nvidia's AI chips.
The push comes amid a shortage of advanced memory in China, where chipmakers have struggled to secure enough supplies to expand AI processor production.
Washington tightened export controls on certain advanced HBM products destined for China in December 2024, prompting Chinese firms to seek supplies through unofficial channels at several times the usual cost, according to the people cited by Reuters.
Original Article
China's CXMT plans advanced AI memory production despite low yields - Reuters
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