These days, there are so many Report It is reported that a number of Chinese third-party memory module manufacturers have begun selling DDR5 DRAM memory based on DDR5 chips produced by China Changxin Memory Technology Company to enthusiasts (CXMT). Changxin Storage has never publicly announced its DDR5, so if it mass-produces enough DDR5 wafers and sells them to third-party module manufacturers, this could have a significant market impact, especially if it starts dumping sub-par into the market Priced products.
According to reports, CX Storage’s DDR5 memory is believed to be produced using CX Storage’s G3 process, which has a line width of 17.5nm. Korea ZDNetciting its source. Experts questioned by the website estimated the production volume at about 80%, but they did not disclose details about which ICs were analyzed.
The first report on Changxin Storage DDR5 SDRAM will appear in 2022and it is expected that these ICs will be manufactured using 17nm DRAM process technology, so the rumors seem to have some basis. Analysts at TechInsights have put CXMT memory on their technology roadmap, and they seem to believe Changxin Storage uses its G4 manufacturing technology to manufacture DDR5 SDRAM.
KingBank and Guangwei recently started selling 32GB DDR5 modules based on DDR5 ICs labeled as “domestic”. Although no manufacturer is explicitly mentioned, this strongly suggests the involvement of Changxin Storage as it is the most advanced DRAM manufacturer in China.
As early as mid-November, there was news that Changxin Storage and Fujian Jinhua sell DDR4 memory at 50% discountmaking it cheaper than reused DDR4 ICs and prompting large memory manufacturers to reduce DDR4 production. Now that Changxin Storage has begun mass production of DDR5, the question arises as to whether the company will try to flood the market with cheap DDR5 chips to gain market share, or whether it will focus on earning premiums and maximizing profits.
It is still difficult to say whether Changxin Storage can flood the market with DDR5 SDRAM ICs. Although its production capacity looks quite strong, it is unclear how much of that capacity can be allocated to the open market, as the primary goal of all Chinese chipmakers is to meet overall local demand, especially that of government-controlled entities. In addition, U.S. and Dutch sanctions have significantly limited Changxin Storage’s ability to increase production and market share.
Regardless, the production of DDR5 memory by Chinese DRAM manufacturers could have a profound impact on the market. If Changxin Memory takes away market share in China from Micron, Samsung and SK Hynix, those companies will be forced to shift DDR5 production elsewhere, increasing competition and driving down prices. That’s good news for end users, but bad news for the DRAM maker oligopoly, which has enjoyed something of an unspoken truce that has largely avoided a price war.