Han Media: The Rise of Chinese Memory Chips, "We Did Not Expect the Technical Capabilities to Reach This Level"!

On January 4, the South Korean media "Herald Economic" published an article stating that a new type of memory chip developed by China's leading memory company, Yangtze Memory Technologies, has about 270 layers, approaching Samsung Electronics' level. This technological breakthrough has triggered reactions from competitors, who said, "We did not expect the technical capabilities to reach this level," causing high tension at Samsung Electronics and Japanese semiconductor company Kioxia.

According to the "Nikkei News," against the backdrop of Sino-US strategic competition, Yangtze Memory Technologies has rapidly improved its technical strength, thanks to policy support, and its global sales share of NAND flash memory has exceeded 10% for the first time.

According to Counterpoint data, Yangtze Memory Technologies' global NAND flash shipment share broke through 10% for the first time in the first quarter of last year. In the third quarter, this share rose to 13%, an increase of 4 percentage points year-on-year, following the fourth-largest global NAND flash company - Micron Technology in the United States.

With the increasing adoption of Yangtze Memory Technologies products centered around Chinese brand laptops and smartphones, its annual market share is expected to exceed 10%. However, the market share calculated by sales remains around 8%.

Yangtze Memory Technologies is expanding its investment in its factory located near Wuhan, Hubei Province, with the goal of reaching a 15% market share by the end of 2026. After completion, Yangtze Memory Technologies will account for 20% of global supply, and it is expected to surpass Japanese Kioxia. Additionally, some predict its market share will approach that of South Korea's SK Hynix.

In the DRAM field, China's Longjing Memory Technologies has also made significant progress. In the third quarter of last year, the company ranked fourth in the global DRAM market with an 8% market share, an increase of 2 percentage points compared to the same period in 2024. However, in high-bandwidth memory (HBM) technology, it still lags behind South Korean companies by about five years.

Chinese memory companies have a significant price advantage. The price of Chinese-made NAND flash memory is 10% to 20% lower than foreign products. Yangtze Memory Technologies was listed on the U.S. sanctions list in 2022, and Japanese companies also have concerns about using products from Yangtze Memory Technologies.

Despite this, with its highly competitive prices, Chinese companies are rapidly expanding their market share in overseas markets. The Semiconductor Industry Association (SEMI) analysis pointed out: "Despite U.S. sanctions, the yield rate of Chinese companies continues to improve. If the price gap persists, using Chinese-made memory chips will eventually become an inevitable trend."

The "Nikkei News" reported that although South Korean memory companies have advantages in the HBM market, they also face two major risks. First, they are heavily dependent on overseas suppliers for raw materials and equipment. Second, they lack key hybrid bonding patents required for HBM and advanced packaging, which may lead to future patent litigation.

At the same time, the "Nikkei News" emphasized that China is rapidly accelerating the speed of patent applications in related fields. Samsung has signed some patent licensing agreements with Yangtze Memory Technologies.

Original: toutiao.com/article/1853347636766915/

Statement: This article represents the views of the author himself.