Memory costs increasing 3-4 times compared to previous years have started to create significant stress across many sectors. Chinese memory manufacturers could be the solution.
In recent years, the difficulties in DRAM memory production due to the artificial intelligence storm have negatively impacted prices. Due to the US embargo, Chinese DRAM manufacturers have not yet been able to offer their products to the global market, but the crisis will change things.
Chinese DRAM Manufacturers Step In
Kye-hyun Kyung, a consultant and former department head at Samsung, argues that the Chinese government's massive investments in memory technologies are starting to bear fruit and will be a remedy for the current crisis.
China, which has continuously increased its investments to avoid dependence on Western firms, has slowly begun to eat into these companies' market share. Kyung stated that if investments continue at this pace, memory prices will start to decline from the second half of next year.
ChangXin Memory Technologies (CXMT) is currently the largest DDR5 manufacturer in the Chinese market. Other companies like Jiahe Jinwei are also quite influential in the market. Research estimates that Chinese memory manufacturers will reach a monthly production of 6 million wafers by the second half of 2027. However, Kyung warns that if AI giants reduce their investments, Chinese manufacturers' investments might also decrease.
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