Currently, when discussing the global memory chip industry, many immediately think of Samsung, SK Hynix, and Micron—the three giants that have long dominated the market. However, two Chinese players are increasingly attracting global attention: ChangXin Memory Technologies (CXMT), a DRAM chip manufacturer, and Yangtze Memory Technologies (YMTC), a NAND Flash producer. These companies are emerging as "challengers" that the entire industry is starting to watch closely.
What makes this interesting is that both companies are aggressively expanding production capacity to capture market share from existing players. Recently, they have even gained recognition from direct competitor Micron. Meanwhile, reports indicate that Apple is lobbying the US government for permission to buy memory chips from CXMT amid rising global chip costs driven by AI demand.
Although CXMT and YMTC may still be unfamiliar names to the general public, within the semiconductor industry, both are seen as China's hope to reduce dependence on memory chip producers from South Korea, the US, and Japan, serving as spearheads in the country's technology self-reliance strategy.
ChangXin Memory Technologies (CXMT) Founded in 2016 in Hefei, Anhui Province, CXMT was established with support from local government and state funds to build China's DRAM industry capable of competing with Samsung, SK Hynix, and Micron.
CXMT is recognized as China's largest DRAM manufacturer, operating factories in Hefei, Shanghai, and Beijing. It produces chips for smartphones, notebooks, PCs, servers, IoT devices, and AI Data Centers. Its main products are DDR4, DDR5, and LPDDR5/LPDDR5X, while it is accelerating development of HBM chips for AI workloads to catch up with market leaders Samsung, SK Hynix, and Micron.
Data shows that in 2025, the company earned about 8 billion US dollars, a 130% increase over the previous year, while production capacity rose from 100,000 wafers per month to 290,000 wafers per month within just one year.
Counterpoint Research reported that CXMT's revenue market share in the global DRAM market rose from 3% to 8% within a year. The company is now preparing for a major IPO to raise funds to expand production capacity and invest in next-generation technologies.
If CXMT is China's hope in the DRAM market, Yangtze Memory Technologies (YMTC) is China's leader in 3D NAND Flash and the largest domestic player. Data indicates its global NAND revenue market share increased from 8% to 13% within one year, driven by growing demand for storage devices for AI Data Centers.
Founded in 2016 in Wuhan, YMTC originated from Wuhan Xinxin Semiconductor (XMC) and has received backing from China's National Integrated Circuit Industry Investment Fund (Big Fund) to build a world-class NAND manufacturer.
YMTC's strength lies in its Xtacking technology, a wafer bonding technique (Hybrid Bonding) that boosts data transfer speeds and reduces power consumption, recognized as one of China's most advanced NAND technologies.
Currently, YMTC produces NAND chips for SSDs, smartphones, Data Centers, and AI storage systems. It is accelerating the expansion of its new Wuhan factory in the second half of 2026 to increase capacity and prepare for a Chinese stock market listing. Analysts expect this will allow YMTC to surpass Micron and SK Hynix to become the world's third-largest NAND producer, behind only Samsung and Kioxia.
Behind their growth lies the wave of AI investment driving the memory chip market into a new super cycle.
The demand to build AI Data Centers and servers has tightened the supply of all types of memory chips, especially DRAM and NAND. Micron estimates this shortage could last beyond 2027, as demand continues to outpace industry capacity.
While the high-end HBM market for AI memory chips remains dominated by Samsung, SK Hynix, and Micron, the general DRAM and NAND markets have become an opportunity for Chinese producers. For decades, the global memory chip market was controlled by only a few players.
The emergence of CXMT and YMTC marks the first time China has national-level memory chip producers, who have begun to take market share from established players. Although they still lag global technology leaders by about 2-3 years, their rapid market share gains have led even competitors like Micron to acknowledge their growth.
Specifically, Sumit Sadana, Micron's Chief Business Officer, stated during the latest earnings announcement that CXMT and YMTC have technological potential and growing market share, even though most sales remain within China.
Meanwhile, reports indicate Apple is seeking US government approval to purchase DRAM chips from CXMT, despite the company being on the US Department of Defense's list of firms allegedly linked to the Chinese military. Apple has acknowledged that rising AI-driven memory chip demand has pushed global prices beyond sustainable levels. Should this deal materialize, it would signal that CXMT is being viewed as a global supplier, not just a domestic producer.
Another noteworthy point is that while Chinese producers still have about a 15% price advantage over foreign competitors, analysts now believe their key strength lies in rapidly expanding production capacity with support from the Chinese government, enabling them to meet market demand when established producers face capacity constraints.
With AI demand growing quickly and major factory expansions underway, CXMT and YMTC are transforming into serious challengers, beginning to capture DRAM and NAND market share from global giants.
Read more
Sources Nikkei Asia , SCMP , Reuters , Financial Times
Follow the Facebook page: Thairath Money at this link -