CXMT to Begin Limited HBM3E AI Memory Production Despite Low Yields

What changed

ChangXin Memory Technologies plans to begin limited production of HBM3E, an advanced memory chip used with AI processors, within two months. Its reported usable yield is only 20% to 30%, compared with about 70% at SK Hynix.

CXMT has already sent two HBM3E versions to several Chinese AI-chip designers:

• A standard design
• An updated version intended to improve yields

Why it matters

HBM is the fast, vertically stacked memory that helps AI processors move data quickly. China needs more of it as domestic chipmakers try to build alternatives to Nvidia’s processors while U.S. export controls restrict access to some foreign technology.

The trade-off is stark: CXMT may have to discard or rework most of what it produces. That makes each usable chip expensive, and CXMT’s HBM3E is expected to cost more than comparable overseas products. Chinese chipmakers have already struggled with memory costs, with several raising AI-chip prices by 20% to 50%.

This is less a sign that China has caught up than a sign that it cannot wait. SK Hynix, Samsung Electronics and Micron dominate HBM supply, while CXMT is still at least one commercial generation behind. In testing, CXMT’s HBM3E performed closer to SK Hynix’s older HBM3 than its newer HBM3E.

The reported production plan and yield figures have not been confirmed by CXMT, and it remains unclear whether the updated design will materially improve output or lead to commercial orders. But the decision shows how valuable even an inefficient domestic supply has become: a chip that is costly and difficult to make may still be better than no chip at all.