China's CXMT to Produce HBM3E Chips Amid US Export Controls

ChangXin Memory Technologies plans to begin limited production of HBM3E high-bandwidth memory chips within the next two months. The move aims to alleviate an intense shortage of AI memory chips in China, a crisis exacerbated by United States export controls on advanced technology. Due to these shortages, domestic AI chip designers including Huawei and Cambricon have increased processor prices by 20% to 50%.

Production faces significant technical hurdles, with CXMT reporting yields of only 20% to 30%. This is substantially lower than the 70% yield achieved by market leader SK Hynix. Additionally, reports indicate that CXMT's HBM3E performance aligns more closely with previous-generation HBM3 technology than current HBM3E standards.

Despite these efficiency gaps, CXMT has already distributed HBM3E samples, including a standard design and a version with improved yields, to several domestic AI chip designers. The company is pushing for domestic production as the global HBM supply chain remains dominated by SK Hynix, Samsung Electronics, and Micron Technology.