Chinese memory chipmaker ChangXin Memory Technologies (CXMT) reinforced its standing as the world’s fourth-largest supplier of dynamic random access memory (DRAM) in the second quarter of 2024, expanding its global market share to 10 percent. This growth narrowed the gap between CXMT and the industry’s leading three players, according to data from Counterpoint Research.
Samsung Electronics maintained its position at the top, holding a 38 percent share of the global DRAM market, followed by SK Hynix at 25 percent and Micron Technology at 24 percent. The combined market share of these three incumbent leaders declined to 87 percent from 94 percent a year earlier, reflecting CXMT’s rising prominence.
Industry experts noted that while the top three manufacturers have increasingly focused on advanced high-bandwidth memory (HBM) to meet the demands of artificial intelligence (AI) processors, this shift has opened opportunities in the conventional DRAM segment. Guo Tao, a member of the Chinese Association for Artificial Intelligence and an AI specialist, explained that although HBM development provides some advantage, CXMT’s primary growth drivers are improved production yields, capacity expansions, and maturity in DDR5 and LPDDR5 product lines. These factors have enhanced supply stability and product consistency for the company.
Guo also identified AI servers as a significant factor supporting CXMT’s growth amid China’s expanding computing infrastructure. In contrast, PC market recovery has been moderate, and smartphone demand remained largely steady.
The global DRAM market itself expanded notably, fueled by strong demand from AI and data center sectors. Counterpoint reported a 57 percent increase in global DRAM market revenue quarter-on-quarter and a 385 percent rise compared to the previous year in the second quarter.
CXMT’s financial results for the first half of 2024 reflect this momentum, with revenue jumping 874 percent year-on-year to 150.3 billion yuan (approximately $21.3 billion). Net profit attributable to shareholders reached 77.6 billion yuan, a substantial swing from a 2.3-billion-yuan loss in the previous year. Guo emphasized the significance of this turnaround, highlighting the capital-intensive nature of the DRAM sector and the importance of profitability for resilience and sustainability during market downturns.
Alongside financial progress, CXMT has advanced technologically. The company reported that its LPDDR6 DRAM products have entered mass production, marking the earliest commercial deployment of this technology in flagship smartphones globally. Additionally, CXMT has begun small-scale production of HBM3E chips, currently under evaluation by Alibaba’s T-Head and Cambricon.
While CXMT is progressing in the high-end HBM segment, Guo maintained that the company’s near-term focus should remain on conventional DRAM. Strengthening its global market share in this foundational segment supports steady revenue and cash generation, which can in turn finance advancements in high-end memory technologies.
China’s robust electronics and semiconductor sectors provide CXMT with a significant domestic market, offering a buffer against global market fluctuations. Continued product innovation and international market expansion could enable the company to build on its domestic success and compete more broadly in the global DRAM industry.