China’s ChangXin Memory Technologies is preparing to begin limited production of HBM3E high-bandwidth memory within two months even though only about 20%-30% of chips coming off its production lines are expected to meet specifications, according to people familiar with the plans cited by Reuters. The decision reflects the intense shortage of advanced AI memory inside China as U.S. export restrictions limit access to foreign technology. HBM is a critical component in AI accelerators because it can feed data to processors at extremely high speed.
HBM is becoming an AI bottleneck
Large AI models require enormous amounts of memory bandwidth. Traditional DRAM cannot always move data quickly enough for the most advanced accelerators.
HBM solves that problem by stacking memory dies vertically and connecting them at high speed.
Yields are the biggest challenge
Reuters reported that CXMT’s HBM3E yields are only about 20%-30%, compared with roughly 70% at market leader SK Hynix.
Low yields make each usable chip more expensive because many units must be discarded or reworked.
China is pressing ahead anyway
Chinese AI-chip designers need more advanced memory than domestic suppliers can currently provide.
That shortage is serious enough that CXMT appears willing to accept poor economics in order to build supply and manufacturing experience.
Samples are already with customers
CXMT has reportedly sent HBM3E samples to several Chinese AI-chip companies.
The company is offering both a standard design and a modified version intended to improve manufacturing yields.
Performance still trails global leaders
Sources told Reuters that CXMT’s HBM3E performs closer to SK Hynix’s previous-generation HBM3 than to the Korean company’s current HBM3E.
That illustrates the technology gap China still faces.
Export controls are shaping the market
The United States tightened restrictions on advanced HBM shipments to China in late 2024.
Chinese companies have increasingly relied on expensive unofficial supply channels or domestic alternatives as a result.
Memory shortages are raising AI-chip prices
Huawei, Cambricon, MetaX and Iluvatar CoreX have reportedly raised prices for current and next-generation AI chips by 20%-50% as memory costs increased.
That makes domestic HBM capacity a strategic priority rather than simply a commercial opportunity.
SK Hynix still dominates
Counterpoint Research estimates SK Hynix held about half of global HBM revenue in the second quarter, followed by Samsung and Micron.
Those companies benefit from years of manufacturing experience and access to the most advanced production equipment.
CXMT is stronger in conventional DRAM
CXMT has built a meaningful position in standard memory and was the world’s fourth-largest DRAM supplier by revenue in the second quarter.
Moving into HBM is much more difficult because stacking, packaging and thermal management add complexity.
The company may be at least a generation behind
Samsung has already expanded HBM4 sales and shipped HBM4E samples to major customers.
That means CXMT is entering commercial HBM production while global leaders are already moving to the next generation.
Strategic value may outweigh near-term profitability
For China, building a domestic HBM supply chain reduces dependence on foreign suppliers and improves the resilience of its AI industry.
CXMT’s low-yield production plan shows how geopolitical pressure can push companies to manufacture technology before it is economically optimal.
Sources
- Reuters, Oct. 28, 2026
- Counterpoint Research market-share estimates cited by Reuters
HBM kapasitesi Çin’in AI hedeflerini sınırlayabilir
Yapay zeka hızlandırıcılarının üretiminde yalnız işlemci tasarımı yeterli değil; yeterli miktarda ileri bellek bulunmadığında sistemler ölçeklenemiyor. Bu nedenle Çin’in yerli AI stratejisinin başarısı CXMT gibi bellek üreticilerinin verim ve hacim artışına bağlı. HBM açığı sürerse güçlü işlemci tasarımları bile veri merkezi kurulum hızını sınırlayabilir.
Önümüzdeki aylarda yatırımcılar ve sektör, CXMT’nin üretim verimini ne kadar hızlı yükseltebildiğine ve müşterilerin performansı kabul edip etmediğine bakacak. İlk üretim ticari olarak pahalı olsa bile stratejik açıdan önemli bir eşik oluşturuyor.
China’s chip ecosystem is being forced to mature together
The HBM challenge is closely tied to progress in domestic AI processors, advanced packaging, substrate materials and data-center design. Weakness in any one layer can limit the whole system. That is why Beijing’s semiconductor strategy increasingly supports an entire supply chain rather than individual chipmakers.
CXMT’s willingness to ship at low yields suggests policymakers and customers may accept near-term inefficiency in exchange for strategic independence. If yields improve materially over the next year, the company could become a much more important supplier to China’s AI sector even while remaining behind global leaders in absolute performance.
