CXMT has been offering DDR4 chips at about half the prevailing market rate
koreaherald.com
February 21, 2026
3 min read
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60/100
Summary
CXMT has reduced DDR4 chip prices to approximately half of the current market rate, intensifying competition for Samsung Electronics and SK hynix in the high-bandwidth memory sector. This pricing strategy raises concerns about the exposure of Korean companies to the legacy DRAM market.
Key Takeaways
- CXMT has halved the prices of DDR4 chips, significantly undercutting the market and raising concerns for Korean companies Samsung and SK hynix.
- The average contract price for PC DRAM DDR4 8Gb increased to $11.50 as of January, marking an eightfold rise from $1.35 a year earlier.
- Chinese firms are transitioning from low-cost legacy DRAM production to higher-end products, with CXMT converting 20% of its DRAM output capacity to HBM3 chip production.
- YMTC has gained a 10% share of the global NAND market and is constructing a new fabrication plant in Wuhan, with plans to produce legacy DRAM and potentially HBM products.
Community Sentiment
Positives
- The aggressive pricing strategy of Chinese fabs could lead to significant market share gains if they maintain quality, challenging established players in the DRAM market.
- China's long-term investment in semiconductor manufacturing may finally yield competitive advantages, potentially reshaping the global landscape.
Concerns
- The current pricing strategy of selling DDR4 chips at half the market rate raises concerns about sustainability and could be seen as a marketing ploy rather than a genuine competitive move.
- Western companies may be making a strategic error by focusing on short-term profits, leaving opportunities for competitors to gain traction in the market.
