South Korean media: China's semiconductor rise is now targeting cutting-edge chips, threatening South Korea's "territory"!

On July 13, the South Korean media outlet "Herald Economy" published an article stating that the Chinese memory chip boom led by Changxin Memory in the DRAM field and Yangtze Memory in the NAND field is not only targeting traditional markets but also high-bandwidth memory (HBM) and other cutting-edge markets. With government support and the foundation of domestic market accumulation, it even threatens the territory of Samsung Electronics and SK Hynix, intensifying the tension within the South Korean industry.

According to industry insiders, Chinese memory chip companies are targeting the HBM market dominated by South Korean companies. HBM is a product that vertically stacks general DRAM to significantly expand the data transfer path, used as AI semiconductors that must perform massive calculations simultaneously.

The leading company driving innovation in Chinese HBM is Changxin Memory. Changxin Memory aims to complete the mass production certification process for its fourth-generation HBM product, HBM3, by the end of this year. Changxin Memory is actively expanding its factories in Beijing and Hefei, and it is expected that this base will increase its HBM production capacity. The industry predicts that China will be able to mass-produce the currently most advanced fifth-generation HBM product (HBM3E) within two years.

South Korean industry assessments believe that if Chinese companies successfully enter this cutting-edge market, the losses for South Korean companies will be unimaginable. Once they enter such a high-value-added market, they will be able to significantly enhance their financial independence and conduct R&D more actively. Data from market research company TrendForce shows that HBM accounted for only 5% of DRAM shipments last year, but its value added accounted for 20% of sales. A South Korean industry insider predicted, "Due to U.S. export restrictions, the demand for HBM in the Chinese market has not been met yet, and it will only continue to grow in the future. If Chinese companies can solve this issue and strengthen their capabilities, entering the global market will be expected to change the competitive landscape of HBM in the future."

In the NAND market, which is also rapidly changing due to AI innovation, China's offensive is also not to be underestimated. In February this year, Yangtze Memory became the first in the industry to mass-produce 294-layer NAND, shocking the industry. Its unique hybrid bonding technology is considered very advanced, so that even South Korean companies must adopt these patents.

At the same time, China has also shown a proactive attitude in R&D investment. Last year, when competitors such as the United States, Japan, and Europe slowed down, China increased its R&D investment ratio. According to the Semiconductor Industry Association, 9.2% of China's semiconductor sales last year were used for R&D, an increase of 1.6 percentage points compared to the previous year (7.6%). This is in sharp contrast to the decline in the proportion of major semiconductor-producing countries such as the United States (19.3% → 17.7%), Japan (12.0% → 5.7%), and Europe (14.0% → 10.8%) during this period.

Original: https://www.toutiao.com/article/1837534920017930/

Statement: This article represents the views of the author.