[Edaily Reporter JAEMIN SONG ] The fact that memory products from China’s largest DRAM manufacturer, Changxin Memory Technology (CXMT), have entered the supply chains of domestic smartphone manufacturers and are now flooding overseas markets through those manufacturers’ distribution networks is significant as it provides an opportunity to assess the competitiveness of Chinese-made memory.

To be blunt, Chinese memory products have not yet earned the trust of major global tech clients. However, this is not the case for general-purpose products, which have relatively low technological barriers. During recent historic supply shortages, major tech firms have adopted a strategy of being willing to use Chinese products as well. Amid this situation, analysts suggest that equipping domestic smartphones—such as those from Xiaomi, Oppo, and Vivo—with DRAM and having them validated by global clients and consumers could serve as the starting point for future market realignment.

According to CXMT’s semi-annual report released on the 31st, its LPDDR4X products have entered the supply chains of major manufacturers such as Xiaomi, Oppo, Vivo, Transsion, and Lenovo. CXMT explained that this marks “entry into overseas markets through relevant device distribution channels.” The company is also supplying LPDDR5 and LPDDR5X to Xiaomi and Transsion. Recently, it agreed to supply next-generation LPDDR6 to the foldable smartphone “Xiaomi 18 Fold.” This indicates a trend toward expanding its business scope to include high-performance mobile DRAM and flagship products.

In this interim report, CXMT specifically outlined its path to overseas expansion. When DRAM for Chinese IT devices is shipped overseas through the device manufacturers’ distribution channels, it is recorded as an export for CXMT and recognized as revenue. It is noteworthy that the company itself has highlighted that it is not only increasing revenue outside mainland China but also expanding its supply reach by leveraging the global sales networks of Chinese finished-product manufacturers.

This strategy is evident in the regional revenue breakdown. Of the 150 billion yuan in revenue from its core business in the first half of this year, 95.8 billion yuan—or 63.8%—was generated outside mainland China. This represents a 26.9 percentage point increase from 36.9% in the first half of last year. In absolute terms, the figure rose from 5.6 billion yuan to approximately 17 times that amount. Revenue from mainland China totaled 54.2 billion yuan.

Revenue from outside mainland China also includes transactions conducted in Hong Kong. CXMT explained that since Hong Kong serves as a hub for international semiconductor trade and offers convenient foreign currency settlement, a significant number of customers conduct transactions there. Since the company did not disclose sales figures for Hong Kong and other regions separately in the first half of this year, it is difficult to classify all sales outside mainland China as final overseas demand. However, given that the share of sales outside mainland China—under the same classification criteria—has nearly doubled in just one year, the trend of rapid expansion in its overseas business base is clear.

As its customer base has broadened, so has its pricing leverage. According to Reuters, Huawei recently requested that CXMT lower DRAM prices, but the request was rejected. With memory supply tight and Chinese smartphone manufacturers becoming increasingly reliant on CXMT, there is less incentive for the company to lower prices. It is reported that CXMT has raised prices for some customers, and in some cases, its supply prices are higher than those of SamsungElectronics and SK hynix. This signifies that Chinese DRAM is beginning to be recognized not merely as a “cheap, second-tier” alternative, but as a major supplier commanding market-rate prices.

This elevated status in the mobile sector is extending to server DRAM. CXMT is reported to have signed a long-term supply contract worth over 20 billion yuan with Chinese tech giant Tencent last June. The contract term is reportedly 3 to 5 years. Following LPDDR for smartphones, the company appears to be expanding its business base by securing long-term orders from major clients for server DDR as well.

According to market research firm Counterpoint Research, CXMT’s global DRAM revenue share rose from 4% in the second quarter of last year to 7% in the second quarter of this year. There is still a significant gap compared to SamsungElectronics (39%), SK hynix (26%), and Micron (25%). However, as CXMT products are being incorporated into Chinese-made smartphones and PCs sold overseas, the scope of competition is widening.

Companies such as Huawei, Xiaomi, Oppo, and Vivo are key mobile DRAM customers even from the perspective of SamsungElectronics and SK hynix. If these companies utilize Chinese-made DRAM as their primary source of supply, K-Memory could lose not only the Chinese domestic market but also overseas demand generated by Chinese-made finished products. While Korean companies maintain their lead in High Bandwidth Memory (HBM), CXMT is emerging as a competitor in general-purpose DDR and mobile LPDDR, putting pressure on both volume and pricing power.

Jeon Byeong-seo, director of the China Economic and Financial Research Institute, stated, “While (Korean society as a whole) is intoxicated by the AI memory boom, China is loading its ammunition,” and advised that a three-pronged defense strategy must be established, encompassing: △ technological superiority in HBM and next-generation processes; △ regulatory cooperation with the U.S. and Europe; and △ securing high-value non-Chinese customers.