[Rumor] China CXMT Undercuts RAM Market, Offering DDR4 at 50% Discount to HP and Dell.
According to a report by The Korea Herald, citing anonymous industry sources, the Chinese memory manufacturer CXMT (ChangXin Memory Technologies) has begun offering DDR4 chips at nearly 50% below the current market price.
This aggressive pricing strategy comes at a critical time. Over the past year, the price of an 8Gb DDR4 chip has skyrocketed eightfold, reaching a market high of $11.50 per chip. The price surge has been so severe that major PC manufacturers like HP and Dell have reportedly begun quality-testing CXMT’s chips to diversify their supply chains and cut costs.
The Shift Toward AI and HBM
While the focus remains on DDR4 and DDR5, CXMT is simultaneously upgrading its facilities to produce HBM3 and HBM3e (High Bandwidth Memory). These high-margin chips are essential for AI data centers. Although CXMT has yet to master HBM4 the industry’s current "Holy Grail" in terms of profitability their presence in the HBM3 market signals a move toward high-end AI infrastructure.
However, industry analysts are skeptical. While CXMT can flood the market with low-cost stock today, there are concerns regarding their long-term delivery consistency and whether they can maintain such aggressive pricing while funding expensive facility upgrades.
The Impact on Consumers
For end-users, the prices of retail RAM modules have remained somewhat stable over the past month, but the broader picture is bleak. For instance, DDR5-6000 32GB kits have seen a fivefold price increase in just six months, making the potential entry of a low-cost alternative like CXMT a significant development for budget-conscious builders.
- The main reason DDR4/DDR5 RAM prices have skyrocketed 5-8 times isn't due to insufficient production, but because major manufacturers like Samsung, SK Hynix, and Micron have shifted their production capacity to HBM (High Bandwidth Memory) to supply chips to Nvidia and other AI companies. This has resulted in a severe shortage of RAM for PCs.
- CXMT's price cut is seen as a "market penetration" strategy to target Western markets through major OEMs (HP/Dell) during a fragile global economy. If successful, China would immediately become the price dictator for the global commodity RAM market.
- Although HP and Dell have begun testing, the yield rate and reliability of Chinese chips remain major questions. If the RMA (Return on Ownership) rate is high, the cost savings upon purchase may not outweigh the long-term benefits.
- Even though DDR5 is the new standard, DDR4 still dominates the market for office computers and older models. CXMT's focus on aggressively pricing DDR4 is therefore an attack on the point of highest usage volume.
Google Issues API Bans for AI Pro Users Caught Using Third-Party Wrappers.
Source: Korea Herald
Comments
Post a Comment