Alibaba's T-Head, Cambricon begin testing CXMT's HBM3E chips

Company aims to expand production next year; technology gap still estimated at 3-5 years

Chinese chipmaker Chang Xin Memory Technologies (CXMT). [Reuters]
Chinese chipmaker Chang Xin Memory Technologies (CXMT). [Reuters]

China is rapidly closing the gap with South Korea in high-bandwidth memory, a critical component for AI chips. Chang Xin Memory Technologies, China's largest DRAM maker, has begun small-scale production of HBM3E chips, narrowing the product-generation gap with industry leaders Samsung Electronics and SK hynix to just one generation. Analysts say China is accelerating its push to build a self-sufficient AI semiconductor supply chain even as US export controls tighten.

According to The Information, CXMT is currently producing HBM3E in limited quantities and plans to scale up production next year. Alibaba's chip subsidiary T-Head and Chinese AI chipmaker Cambricon are testing CXMT's HBM3E in combination with their own processors. If plans proceed on schedule, Chinese AI chips incorporating CXMT's HBM could reach the market as early as next year.

HBM is a high-performance memory chip that stacks multiple DRAM dies vertically to boost data processing speeds, making it a core component of AI accelerators. SK hynix, a key supplier to Nvidia, began mass-producing HBM3E in 2024 and is now moving toward the next-generation HBM4 market alongside Samsung Electronics and Micron.

CXMT's entry into HBM3E production means it has, in terms of product generations, pulled to within one step of the global leaders. The testing by T-Head and Cambricon could also give CXMT valuable manufacturing experience and customer feedback ahead of full-scale production.

For China, securing a domestic HBM supply chain also carries strategic weight as a way to work around US export controls. Washington has applied export restrictions on advanced HBM destined for China since 2024. If Chinese AI chipmakers can reliably source domestically made HBM, they could partially ease the supply constraints those restrictions impose.

CXMT has not yet caught up with Samsung Electronics and SK hynix in technical capability. The company still struggles with low production yields and faces limits on acquiring the advanced manufacturing equipment used by the leading chipmakers due to US restrictions. The actual technology gap in HBM is still estimated at roughly three to five years.

How quickly CXMT can raise its production volume and yields will likely determine the competitiveness of Chinese-made HBM going forward. The company raised $8.6 billion through a listing on the Shanghai Stock Exchange last Monday, giving it greater financial capacity to invest in advanced DRAM and HBM development.


sjy@heraldcorp.com