How China Advances Without Access to Leading-Edge Equipment
Chinese semiconductor firm CXMT has commenced mass production of its fifth-generation DRAM platform, G5, marking a significant increase in manufacturing capacity. The new platform enables at least a 50% rise in the number of chip blanks produced from each silicon wafer compared to its previous generation. Additionally, CXMT began large-scale manufacturing of two 24Gb LPDDR5X variants, also achieving a 50% improvement over earlier models. These memory chips, designed for smartphones and portable devices, come in packages with 496 and 245 pins.
Due to restrictions blocking access to EUV lithography equipment since 2019, CXMT relies on DUV lithography technology. This approach involves quadruple patterning to enhance chip density, although transitioning to EUV could reduce processing steps by around 20%. Despite these limitations, a CXMT representative stated:
"Our technological capabilities are now on par with the most advanced nodes currently produced in the industry." Lo Xiaodong, CXMT Representative
In Q2 2026, CXMT captured 9.5% of global DRAM revenue, a notable jump from 7.6% in Q1. The company competes with major players such as:
- Samsung, holding a 39.4% market share
- SK Hynix, with 24.9%
- Micron, at 23.3%
Memory demand continues to climb amid shortages affecting smartphone markets and component pricing. Contract prices for DRAM surged by 93-98% in Q1 2026, while LPDDR5X prices for smartphones increased 78-83% in Q2.
In September 2026, CXMT announced the start of mass production for LPDDR6 memory, reaching speeds up to 12.8 Gb/s. Meanwhile, SK Hynix reported LPDDR6 chips exceeding 10.7 Gb/s speeds in March, with shipments planned for the latter half of the year. However, despite rising demand, global smartphone shipments are forecasted to decline by 13.9% in 2026, potentially impacting market dynamics. As Ray Wang noted:
"Any further restrictions on lithography equipment would pose the greatest challenge for Chinese memory manufacturers." Ray Wang
Furthermore, in July 2026, CXMT raised prices for Huawei, with some DDR5 server modules priced above Samsung equivalents. Concurrently, Apple petitioned U.S. authorities to ensure CXMT avoids being blacklisted, recognizing the critical role of Chinese memory suppliers in its production chain. Raymond van Eck commented:
"Without guaranteed volumes, you're simply out of the game." Raymond van Eck
CXMT’s progress amidst these constraints highlights the resilience and adaptability of China’s semiconductor sector in navigating current global limitations. The company's ability to expand output and deploy new technologies despite restricted access to top-tier equipment emphasizes the strategic importance of international partnerships for firms like Apple, aiming to maintain stable supply chains amid escalating trade tensions.