China's CXMT to start HBM3E AI memory output despite yields of 20-30%, sources say
China's largest DRAM maker plans limited HBM3E production within two months, Reuters reported. Only 20% to 30% of the chips currently meet specifications, sources said.
Symbolic image · Photo: 思考的苇丛 / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
Chinese memory maker ChangXin Memory Technologies (CXMT) plans to start limited production of HBM3E within the next two months, Reuters reported, citing two people familiar with the matter. The high-bandwidth memory is used alongside AI processors. CXMT did not respond to a request for comment.
According to the sources, only about 20% to 30% of the chips currently meet specifications, compared with around 70% at market leader SK Hynix. Many chips must be discarded or reworked, making production expensive. In testing, CXMT's HBM3E performed closer to SK Hynix's previous-generation HBM3. Samples have gone to several Chinese AI chip designers.
The move comes amid a global shortage of AI memory. Washington tightened export controls on some advanced HBM products bound for China in December 2024, and Chinese chipmakers have turned to costly unofficial channels. CXMT held 10% of global DRAM revenue in the second quarter, making it the fourth-largest supplier, according to Counterpoint Research.