DRAM specialist plans Beijing pilot line, crossing into flash storage as global memory shortages intensify.
Chinese semiconductor manufacturer ChangXin Memory Technologies (CXMT) is preparing to enter the NAND flash memory market, according to sources familiar with the matter. The move will see the DRAM specialist challenge global giants such as Samsung Electronics, whilst setting up a direct domestic rivalry with Yangtze Memory Technologies (YMTC).
The planned expansion comes amid a severe global memory shortage driven by surging artificial intelligence server demand. Industry executives and analysts expect supply tightness across NAND flash to persist well into next year and potentially through to 2027, largely because capital expenditure has been diverted towards high-bandwidth memory (HBM) and DRAM production.
To support its foray into storage chips, CXMT is setting up a research-and-development production line for NAND flash at its new Beijing facility alongside a dedicated research institute. The company has already held preliminary commercial discussions with prospective clients, including a new start-up developing storage hardware for AI workloads and supercomputing systems.
The strategy blurs historical divisions within China’s semiconductor ecosystem. CXMT and YMTC—often dubbed the “twin stars” of the nation’s memory industry—have traditionally focused on separate domains, with CXMT specialising in DRAM and YMTC leading in NAND flash. However, boundaries are dissolving as YMTC also evaluates entering the low-power DRAM market.
Both companies remain central to Beijing’s self-sufficiency drive amid tightening US export controls. Funded by national chip funds and local governments, CXMT recently raised $8.6 billion (57.92 billion yuan) in a blockbuster initial public offering to fund its second Beijing plant, while YMTC’s parent firm, CCSH, is preparing a $4.9 billion (33 billion yuan) listing in Shanghai.
