YMTC and CXMT Reported to Join Forces in HBM3 Development in China
Such types of reports hint at a significant collaboration within the semiconductor industry as NAND manufacturing YMTC is expected to enter into an alliance with DRAM expert CXMT. The main plan of this group is to advance the production of high-bandwidth memory (HBM), focusing on HBM3 and beyond, in conformity with China's objective of self-reliance in technology.
The Strategy Entry of YMTC into DRAM
YMTC has mostly been known for NAND, but recent reports have indicated that it might shift its focus for a strategic investment in DRAM. It is getting DRAM R&D equipment.
The collaboration involves CXMT which is the currently largest DRAM maker in China. In addition, CXMT already mass-produces HBM2 and is reportedly closing the gap to establish HBM3 technology.
Taking Advantage of Hybrid Bonding Technology
One of the key elements of the reported partnership has to do with YMTC utilizing CXMT's critical in characteristics hybrid bonding expertise. This will boost the speed with which YMTC enters the market on DRAM-based HBM solutions and augments production capacity within the region.
Also, before US export controls took away its global reach as a massive NAND manufacturer, YMTC was thought to have sufficient manufacturing capabilities to cater to the country's needs for HBM production.
Implications for the Global HBM Market
However, the agreement forms part of a larger picture in which China intends to understand itself in terms of having a complete AI tech stack and an exclusive domestic critical technologies capability. A successful collaboration between YMTC and CXMT would throw established South Korean market leaders like Samsung into competition.
But those companies have a current lead in technology and IP while the fast acceleration of Chinese manufacturers may impact global market dynamics- again because of the country's emphasis on building enough domestic capacity in semiconductor- and HBM-fabrication.
