Cheap DDR5 memory chips from China are about to flood the market

Although it has not been officially announced, if CXMT does indeed mass produce DDR5 chips, the company could have a significant impact on the market thanks to its large production volume. This would also make DDR5 memory more accessible to tech enthusiasts at more attractive prices.

DDR5 memory prices to become more attractive as CXMT accelerates production plans

According to ZDNet Korea , CXMT's DDR5 memory is manufactured using G3 process technology with a 17.5nm line width. Experts say the yield of these products is around 80%, but the company did not specifically disclose which chips were researched.

The first reports of CXMT’s DDR5 SDRAM chips came in 2022, around the same time the 17nm process technology was announced. Analysts from TechInsights said CXMT is using G4 technology to produce DDR5 SDRAM.

In addition, other Chinese companies such as KingBank and Gloway have released 32GB DDR5 modules using chips labeled “domestic.” While it’s unclear what memory chips are used inside them, it wouldn’t be surprising if they come from CXMT, which is China’s most advanced DRAM maker. In mid-November, CXMT and Fujian Jinhua began selling DDR4 memory at 50% discounts compared to older chips.

Will DDR5 prices become more competitive?

If CXMT does start producing DDR5, it will be important to understand the company’s plans: whether it intends to flood the market with low-cost chips to gain market share or focus on maximizing profits. At the moment, it is difficult to determine the company’s ability to launch low-cost DDR5 chips. While CXMT has impressive manufacturing capabilities, it is unclear how it will operate in the open market. The main focus of Chinese manufacturers is often to meet domestic demand, including government customers.

If CXMT succeeds in taking market share from the likes of Micron, Samsung, and SK Hynix in China, these companies will be forced to adjust their strategies and launch DDR5 in other regions, increasing competition and driving down prices. This will benefit consumers, but it’s clearly not good news for the big three memory companies, which are moving to call a sort of “ceasefire” and give up on price competition.

Source: https://thanhnien.vn/chip-nho-ddr5-gia-re-tu-trung-quoc-sap-tran-ngap-thi-truong-185241221113352636.htm