[Edaily Reporter SIN SOO-JUNG ] U.S. memory semiconductor stocks plummeted amid concerns over China’s technological catch-up. As China’s largest DRAM manufacturer, Changxin Memory Technology (CXMT), announced progress in developing next-generation memory technology, the possibility of intensifying competition in the global semiconductor market came into sharp focus. With Samsung Electronics and SK Hynix also seeing their stock prices fall, attention is turning to the impact that China’s self-reliance in memory technology will have on the profitability of domestic semiconductor companies.

On the 12th (local time), U.S. memory chipmaker Micron Technology closed at $989.04 on the New York Stock Exchange, down 3.88% from the previous trading day. The Philadelphia Semiconductor Index fell 2.67% to 12,236.92, dropping to its lowest level in three weeks. Shares of memory and storage-related companies such as SanDisk, Seagate Technology, and Western Digital also declined.

One factor weighing on semiconductor stocks was news of technological developments at China’s CXMT. According to the South China Morning Post (SCMP), CXMT President Qiao Kanwei announced at a recent industry event in Shanghai that the company had made significant progress in developing “4F² (4F Square)” technology, a next-generation DRAM structure. He also announced plans to unveil DDR5 memory products for servers incorporating this technology by the end of this year.

4F² is a technology that reduces the area of memory cells used to store data in semiconductors. It can reduce cell area by approximately 33% compared to the 6F² structure currently used in most commercial DRAM, making it advantageous for storing more data in the same space. CXMT explained that it has improved current leakage issues and increased storage density through its proprietary vertical transistor structure.

It is worth noting that Samsung Electronics and SK Hynix are also developing the same technology. SK Hynix unveiled its 4F² technology development roadmap last year. Samsung Electronics is also reportedly pushing for mass production of next-generation DRAM incorporating this structure, targeting 2028. If CXMT launches its product within the year as planned, technological competition with Korean companies could intensify significantly.

Domestic semiconductor stocks are already feeling the impact. On the 12th, Samsung Electronics fell 4.39% and SK Hynix dropped 4.52% on the Korean stock market. This is interpreted as the result of news about Chinese companies catching up technologically, combined with the burden of high interest rates and profit-taking in artificial intelligence (AI)-related stocks.

However, CXMT’s technology announcement does not necessarily mean it has secured the competitiveness needed for actual mass production. The company has not disclosed specific details regarding the performance, production yield, or supply scale of its next-generation products. Developing new technology and establishing a stable mass production system are two separate matters. The DDR5 memory for servers currently under development is also a different product from the High-Bandwidth Memory (HBM) that Samsung Electronics and SK Hynix are focusing on.

Nevertheless, the market assessed that China’s technological catch-up has emerged as a medium- to long-term variable for the domestic memory industry. CXMT is expanding its production capacity, as evidenced by its announcement last month that it had begun mass production using its fifth-generation DRAM manufacturing platform. If the company increases its supply in the server DRAM market in the future, it could put pressure on the price competitiveness and profitability of Samsung Electronics and SK Hynix. However, the actual impact is expected to depend on CXMT’s mass production capabilities and its ability to secure customers.