From The Next Web · Darius Popa · · 1m 40s
China's CXMT starts AI memory production with low yields
CXMT will begin making HBM3E chips for AI despite only 20% to 30% of its production meeting specifications, far below rivals' standards.
In brief
CXMT will begin making HBM3E chips for AI despite only 20% to 30% of its production meeting specifications, far below rivals' standards. China's CXMT will start limited HBM3E production within two months despite yields of only 20% to 30%, driven by US export controls cutting off Chinese AI chipmakers from advanced…
CXMT plans HBM3E production despite low yields
China's biggest memory chipmaker CXMT will start making HBM3E, advanced memory for AI chips, even though only 20% to 30% of its production is usable. It expects limited production within two months.
What HBM3E is and why yields matter
High-bandwidth memory stacks chips to pass data quickly to AI processors, key for training large language models. CXMT's yield of 20% to 30% is far below SK Hynix's 70%, making production expensive.
CXMT's chip lags behind rivals' latest versions
In testing, CXMT's HBM3E performed closer to SK Hynix's older HBM3 than to its HBM3E. CXMT has sent customers two versions: standard design and an update to improve yields. Its chip will likely cost more.
US export controls drive China's push forward
The US tightened export controls on advanced HBM products to China in December 2024. Chinese AI chipmakers cannot get enough memory and have sought it through unofficial channels at several times the cost.
Rivals move ahead with next-generation chips
SK Hynix said HBM4 beat yield targets and will pass HBM3E in shipments and revenue in the fourth quarter.Samsung expanded HBM4 sales and shipped HBM4E samples in July.CXMT remains at least a generation behind.
The bottom line
China's CXMT will start limited HBM3E production within two months despite yields of only 20% to 30%, driven by US export controls cutting off Chinese AI chipmakers from advanced memory.
