Micron and Korean Chipmakers Slide as China's CXMT Advances DRAM
Micron Technology and South Korean rivals saw shares drop after China's ChangXin Memory Technologies announced plans to launch denser AI server chips by 2026.
Shares of Micron Technology, Samsung Electronics, and SK Hynix fell approximately 4% on October 12 following reports that China's largest DRAM manufacturer, ChangXin Memory Technologies (CXMT), has made significant progress in increasing storage density. During an industry event in Shanghai, CXMT President Cao Kanyu announced the company aims to introduce a server memory product using 4F square stacked DRAM architecture by the end of 2026.
This 4F square technology can reduce cell area by roughly 33% compared to the current 6F square layout, allowing for higher storage density on the same chip size. While Micron and its Korean competitors are also pursuing this architecture, CXMT's specific timeline for the AI data center market created immediate pressure on high-margin server memory stocks. Western Digital shares also declined by 2%.
Some analysts suggest the threat remains limited, noting that CXMT's technology still trails the industry leaders by two or three generations. Market impact will depend on whether the Chinese firm can achieve viable shipment volumes and customer qualification. Additionally, Apple Inc. reportedly declined to purchase chips from CXMT in July after the company demanded prices higher than those offered by Samsung and SK Hynix.
