The Paradox of China's HBM Self-Sufficiency... Global DRAM Prices Soar as Production Increases

China's largest DRAM manufacturer, ChangXin Memory Technologies (CXMT), is converting large-scale production lines to support Huawei's Artificial Intelligence (AI) accelerators and achieve High Bandwidth Memory (HBM) self-sufficiency; however, this is instead acting as a catalyst that pushes up global DRAM prices.
Initially, the market feared that China's aggressive fab expansions would lead to a price collapse (dumping) in the commodity legacy DRAM market. However, due to the absence of Extreme Ultraviolet (EUV) lithography equipment and low packaging yields, massive amounts of wafers are being consumed, resulting in an opposite supply-demand distortion. Analysis suggests that China's forced declaration of HBM independence is causing its own legacy DRAM supply to evaporate, leading to the paradoxical result of prolonging the strong performance of Korean memory companies such as Samsung Electronics and SK hynix.
The Paradox of China's HBM Self-Sufficiency... Global DRAM Prices Soar as Production Increasesn.news.naver.comCXMT converting fab expansion portion to HBM... Wafer consumption leads to shortage of commodity legacy DRAM EUV absence and low packaging yields cause bottlenecks... Samsung Electronics and SK hynix benefit from the ripple effect China's largest DRAM manufacturer, ChangXin Memory Technologies (CXMT), for Huawei's Artificial Intelligence (AI)
[MPAK x Ponpangi] MPAK affiliate online retailer Ponpangi! Essential to check Ponpangi market prices before buying a mobile phone![Ponpangi]