China's Changxin new technology shocked global chip stocks, with Samsung and SK Hynix plummeting. (AFP)
[Financial Channel/Comprehensive Report] A latest technological development by China's major memory manufacturer Xin Memory (CXMT) actually caused a shock in global semiconductor stocks! According to reports, Changxin announced that it has made key progress in the new generation of DRAM memory architecture and plans to launch server memory products using 4F² technology by the end of this year. The news triggered market concerns that Chinese manufacturers may accelerate the narrowing of the technology gap with Samsung Electronics, SK Hynix and Micron, further threatening the competitive advantages of global memory manufacturers.
"IBTimes" pointed out that a technological advancement of China's Changxin may be able to produce more efficient memory chips, thereby storing more data in a smaller space. This news shocked investors when it came out.
Please read on...
According to a report by "Morningstar" on October 14, Changxin's new technology news has intensified investors' doubts about China's competition. Since the opening of trading on Monday, the stock prices of Samsung and SK Hynix have fallen by approximately 13% and 15% respectively. US memory majors Micron and SanDisk also fell by about 5% and 3% respectively on the 13th, while European semiconductor equipment and chip companies ASML, BE Semiconductor and STMicroelectronics fell by about 2% to 4%.
What exactly is the breakthrough in this technology? According to "TrendForce News", Changxin President Cao Kanyu introduced the new generation 4F² DRAM architecture at an industry conference held in Shanghai on the 10th. Compared with the current mainstream 6F² design, 4F² can reduce the area occupied by a single memory unit, theoretically increasing the memory density of the same chip area by about 30% to 50%.
The technologies used by Changxin include vertical surround gate transistors (VSG), which help improve transistor control capabilities, reduce leakage current and short channel effects, and explore the use of wafer hybrid bonding technology to improve the connection between memory cells and peripheral circuits. Cao Kanyu said that the company has announced more than 300 patent families related to the 4F² architecture.
It is worth noting that Changxin plans to launch server DDR5 RDIMM products using the new architecture by the end of this year, showing that it is actively entering the server market that was originally dominated by international memory manufacturers.
"Morningstar" stock analyst Jing Jie Yu pointed out that Changxin's announcement disrupted market expectations for the development schedule of next-generation memory technology. If Changxin can achieve commercialization earlier than its competitors, it will highlight the technological competitiveness of China's DRAM industry. Considering that China is rapidly expanding DRAM production capacity, it may also increase the risk of oversupply in the future market.
However, Samsung and SK Hynix are also developing 4F² related technologies. TrendForce News pointed out that Samsung has demonstrated a 16Gb prototype product that combines 4F² units and hybrid bonding technology. The launch of new products by Changxin at the end of the year does not mean that it has large-scale mass production capabilities. The new products may even only partially adopt the 4F² architecture.
In addition, Reuters pointed out that this wave of decline in semiconductor stocks was also affected by market concerns about AI investment expenditures. Broadcom CEO Chen Fuyang recently likened some AI investment behaviors to casino speculation, further aggravating market doubts. Therefore, although the Changxin Technology news triggered selling pressure on global memory stocks, it remains to be seen whether the new architecture can truly be commercialized.
Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel
