Chinese DRAM manufacturers Changxin Memory and Fujian Jinhua are actively expanding production capacity and cutting prices to seize market share

According to reports, China's DRAM manufacturers Changxin Memory (CXMT) and Fujian Jinhua are actively expanding DRAM production capacity and reducing DRAM product prices to accelerate market development. Their DDR4 chips are 50% cheaper than similar chips made by Korean manufacturers. Changxin Memory's production capacity has increased from 70,000 wafers per month in 2022 to 200,000 wafers per month in 2024. The goal is to increase production to 300,000 wafers per month in the next few years and occupy the global 11% share of the DRAM market. Although Fujian Jinhua is sanctioned by the US government, it is also increasing its DDR4 production. Due to oversupply in the DDR4 chip market, fierce price competition has been triggered. The prices offered by these two Chinese DRAM manufacturers are 50% lower than Micron, Samsung and SK Hynix, and even 5% lower than second-hand reballed DRAM chips. This aggressive pricing is driving down the overall price of the DDR4 market, especially in the consumer market. However, some industrial customers are still cautious about adopting domestic DRAM.