CXMT Demonstrates Significant Progress in DDR5 Production Yields

Based on a recent analysis by Citigroup, China's domestic memory chipmaker, CXMT, has shown notable advancements in its DDR5 production yields. The company's DDR5 yield rates have now reached approximately 80%, a significant improvement from the initial 50% yields at the start of production.

CXMT's success in DDR5 production builds on its experience with DDR4 manufacturing, where the company has achieved yields of around 90%. Currently, CXMT operates two fab facilities in Hefei. Fab 1 is dedicated to DDR4 production using 19 nm process technology and has a capacity of 100,000 wafers per month. Fab 2 focuses on DDR5 production with 17 nm technology and a current capacity of 50,000 wafers per month. It is projected that CXMT's DDR5 yields could further improve to approximately 90% by the end of 2025.

Despite these advancements, CXMT faces technological challenges compared to industry leaders. The company's production process for DDR4 is at 19 nm and for DDR5 is at 17 nm, which lags behind competitors like Samsung and SK Hynix that manufacture 12 nm DDR5 chips. This technology gap results in higher power consumption and less favorable form factors for CXMT's products. CXMT primarily targets domestic Chinese smartphone and computing OEM customers.

Looking ahead, CXMT plans to expand its DDR5 and HBM capabilities. There is a potential additional capacity of 50,000 wafers per month at Fab 2 in 2025 if market conditions are favorable. The company is also making progress on HBM2 development, with customer sampling underway and low-volume production expected to begin in mid-2025.