[Edaily Reporter JAEMIN SONG ] China’s largest DRAM manufacturer, Changxin Memory (CXMT), benefited from the AI-driven memory boom, with its third-quarter revenue surging by more than 600% year-over-year. This is due to the worsening shortage of general-purpose DRAM as SamsungElectronics and SK hynix have focused their production capacity on high-value-added products such as High Bandwidth Memory (HBM). Building on this improved performance, CXMT is increasing its research and development (R&D) investment and pursuing long-term supply contracts in an effort to narrow the competitiveness gap with domestic companies.

According to industry sources on the 2nd, CXMT’s third-quarter revenue this year reached 118.71 billion yuan (approximately 24 trillion won), a 613.2% increase compared to the same period last year. Net income turned positive at 54.4 billion yuan (approximately 11 trillion won), and the gross profit margin stood at 89.53%. This is interpreted as a windfall resulting from a shortage of general-purpose DRAM caused by SamsungElectronics, SK hynix, Micron, and others expanding their HBM production in response to growing investment in AI data centers. Rising memory prices and increased sales volume also supported the improved performance.

Notably, CXMT is leveraging this boom as an opportunity to strengthen its technological competitiveness and secure stable demand. CXMT’s third-quarter R&D investment totaled 4.212 billion yuan (approximately 850 billion won), a 53.8% increase from the same period last year. Cumulative investment for the first three quarters of this year also rose by 73% to 11.071 billion yuan. Given the persistent technology gap with domestic competitors, this move is interpreted as an effort to accelerate entry into the next-generation memory market by expanding R&D investment.

CXMT recently completed the verification of engineering samples for its sixth-generation DRAM process, which employs a vertical channel-based 4F² structure. The company plans to supply prototype DDR5 RDIMMs for servers to customers by the end of the year. The company has also begun mass production of LPDDR6, a low-power DRAM, and is pursuing limited production of HBM3E. However, with HBM3E yield reportedly at 20–30%, a technological gap persists in the advanced memory sector compared to SamsungElectronics and SK hynix.

Alongside technological development, the company is also working to secure long-term customers. In June, CXMT signed a multi-year DRAM supply contract worth over 20 billion yuan (approximately 4 trillion won) with China’s Tencent. During an earnings briefing on the 30th of last month, the company announced that it is in discussions with several major customers regarding additional long-term supply contracts. A CXMT spokesperson explained, “We are currently negotiating long-term supply contracts with several major customers and plan to secure stable demand over the medium to long term through these agreements.” This is interpreted as a strategy to stabilize the investment foundation by securing long-term demand in a market characterized by high volatility in memory prices.

SamsungElectronics and SK hynix are also benefiting from rising prices of standard DRAM as they strengthen their production strategies focused on high-value-added products such as HBM4. While it will not be easy for CXMT to narrow the gap with Korean companies in the advanced memory sector in the short term, expanding its production capacity and customer base in the standard DRAM market could potentially influence future price competition.

An industry official stated, “While SamsungElectronics and SK hynix are currently benefiting from the rise in standard DRAM prices, we must note that CXMT is investing the funds it secured during the boom period into technology development and acquiring new customers,” adding, “In the medium to long term, competition in the standard DRAM market could become even more intense as Chinese companies expand their production capacity.”