The chip yield rate is 20% and Changxin Memory is sweating coldly as it fights for mass production! Reason behind revealed

China's largest DRAM manufacturer Changxin Memory (CXMT) is said to be advancing the production of the fifth-generation high-bandwidth memory (HBM) HBM3E, even though its yield rate is only 20% to 30%. However, due to U.S. export controls, it is difficult for Chinese artificial intelligence semiconductor companies to obtain advanced memories. In order to deliver products as soon as possible, the company has to accept a lower yield rate.

Reuters reported on the 28th that Changxin Memory has sent HBM3E samples to a number of Chinese artificial intelligence semiconductor design companies and plans to start small batch production in the next two months. Two sources said the current yield is about 20% to 30%, which is far behind market leader SK Hynix's yield rate of about 70%.

It is said that Changxin Storage provides two types of HBM3E to customers: one is a standard design product, and the other is an improved product, which has some changes in the design to improve yield. Test results show that its performance is closer to the previous generation HBM3 than to SK Hynix’s HBM3E. With lower yields pushing up manufacturing costs, some expect prices to be higher than similar products from overseas rivals.

Behind Changxin Memory’s accelerated mass production is China’s shortage of advanced memory.

In December 2024, the United States tightened export controls on some HBM products exported to China. Since then, Chinese companies have had to purchase through unofficial channels, and the price is several times higher. Reuters reported last month that Chinese artificial intelligence chip companies, including Huawei and Cambrian, have increased product prices by 20% to 50% due to rising memory costs. It is reported that Changxin Storage has been independently developing HBM technology since 2024.