China's largest DRAM maker, CXMT, has reportedly begun small-batch production of fifth-generation high-bandwidth memory (HBM), HBM3E. With Samsung Electronics, SK hynix, and Micron mass-producing sixth-generation HBM4, CXMT has effectively closed in to one generation behind based on product generations.
On the 31st (local time), U.S. IT outlet The Information reported, citing multiple sources, that CXMT is producing HBM3E in small volumes and plans to ramp up production next year.
HBM is a memory semiconductor that stacks multiple DRAM dies vertically to boost data processing speed and is a key part of AI accelerators. HBM3E is the fifth-generation product following HBM, HBM2, HBM2E, and HBM3. It will be followed by sixth-generation HBM4 and seventh-generation HBM4E.
Alibaba's chip-design subsidiary T-Head and Chinese AI Semiconductor company Cambricon Technologies are reportedly testing CXMT's HBM3E for use in their in-house processors. If verification proceeds as planned, Chinese AI semiconductors equipped with CXMT HBM3E could be released as early as next year.
Orders from Chinese fabless firms are also expected to help CXMT gain HBM mass-production experience and real customer feedback. The Information assessed the entry of a Chinese company into advanced HBM production amid rapidly growing HBM demand driven by AI as a significant step forward for China's semiconductor industry.
U.S. restrictions on semiconductor exports to China, which have made it harder to secure advanced HBM, are also accelerating the buildout of a domestic supply chain in China. Since 2024, the United States has restricted exports of advanced HBM to China. CXMT also faces limits in obtaining some advanced semiconductor manufacturing equipment used by leading memory makers.
However, even if the product-generation gap has narrowed by one step, it is hard to say the actual technology gap has shrunk to the same level. CXMT is still said to lag leading companies in Production yield, reliability, and performance. The Information reported that CXMT's HBM technology trails global leaders by three to five years.
T-Head and Cambricon were also said to be working to optimize CXMT HBM3E to operate stably with their in-house AI processors, even though its speed and reliability fall short of products from Samsung Electronics, SK hynix, and Micron.
SK hynix began mass production of HBM3E in 2024. The three memory companies—Samsung Electronics, SK hynix, and Micron—are now in mass production of sixth-generation HBM4 and have begun supplying samples of seventh-generation HBM4E, targeting a launch next year.
CXMT raised $8.6 billion (about 11.8 trillion won) through a listing on the Shanghai Stock Exchange last month. Based on this, it is seeking to rapidly expand its lineup beyond commodity DRAM into higher value-added memory. Recently, it also moved into mass production of LPDDR6, a next-generation low-power DRAM for mobile. If it expands supply to HBM3E as well, it will strengthen memory for both mobile and AI accelerators at the same time.