Dram: Chinese company begins its own mass production of drams
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A Chinese state-backed semiconductor company, ChangXin Memory Technologies (CXMT), has begun mass production of the country's first locally designed Dynamic Random Access Memory (DRAM) chip, the China Securities Journal reported Monday.
The Chinese company ChangXin Memory Technologies begins its production of DRAM with the help of the state
The move marks an important step in China's push to become fully self-sufficient in semiconductors in the midst of an ongoing trade war with the United States, but experts are skeptical about whether local companies can challenge the chip giants of memory like Samsung and Micron in a $ 100 billion per year market.
DRAM chips are widely used for storage on personal computers, servers, and mobile devices.
The global DRAM chip market was worth around $ 99.65 billion in 2018 and is dominated by South Korean Samsung, which held 42.7% of the market in the first quarter. SK Hynix had a market share of 29.9% and US company Micron 23.0% during the same period, according to Trendforce data.
In an effort to boost the country's semiconductor industry, the Chinese government will encourage national companies to use locally designed DRAM chips, Stewart Randall, director of electronics and integrated software at consulting firm Intralink, based in Shanghai, said on Monday.
Visit our guide on the best RAM memory on the market
Locally designed and produced DRAM chips may sell well in the Chinese market, but they face obstacles in the foreign market because their technology is still somewhat "lagging" compared to the aforementioned foreign companies, Randall said.
Changxin Memory Technology is a semiconductor company founded in 2016 in the eastern Chinese city of Hefei, has started mass-producing its own DRAM chips, the company's president and CEO Zhu Yiming said Friday during the World Manufacturing Convention. (World Manufacturing Convention) in the city.
The company claims to have invested around RMB 150 billion (about $ 21.1 billion) in the chip project, including $ 2.5 billion invested in research and development, as well as capital facilities.
ChangXin Memory Technologies' entry into the market is a very interesting move that could gently shake the market. If the factory can close the technology gap and increase production, we could see that DRAM prices will drop further in a few years. We will keep you informed
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