Chinese memory manufacturer CXMT is preparing volume production of HBM3E high bandwidth memory for artificial intelligence accelerators. Reuters reports that initial production runs will emerge within 2 months to support domestic chip designers facing export restrictions on Nvidia hardware. However, low manufacturing yields continue to limit output.
Low manufacturing efficiency remains the primary obstacle for CXMT. Only 20% to 30% of manufactured silicon passes quality tests, compared to roughly 70% at market leader SK hynix. Stacking multiple memory dies requires extreme manufacturing precision to avoid defects. Reuters sources also state that performance levels on early CXMT chips match older HBM3 standards rather than competitive HBM3E speeds.
Domestic demand drives this production push. Chinese tech firms need high bandwidth silicon to run large language models as foreign imports face tightening trade rules. Global market control remains concentrated among established suppliers. During the second quarter of 2026, SK hynix secured approximately 50% of global HBM revenue, Samsung took 33%, and Micron held 18%. CXMT captured 10% of the conventional DRAM market during that timeframe.
