China's CXMT Plans Entry into NAND Flash Market, Sources Say

ChangXin Memory Technologies (CXMT), a leading Chinese maker of DRAM chips, is preparing to enter the NAND flash memory market, according to three people with knowledge of the matter. The strategic shift comes amid a global memory shortage and would position the company to compete directly with giants like Samsung Electronics and domestic rival Yangtze Memory Technologies (YMTC).

CXMT's Strategic Shift

According to two of the sources, who spoke on condition of anonymity as the plans are private, CXMT intends to establish a research and development production line for NAND flash at its new plant in Beijing. The company has also set up a research institute in the capital to support NAND development, one source said.

A third person familiar with the plans stated that CXMT has discussed its NAND ambitions with potential customers, including a startup that aims to use the chips in storage products for AI systems and supercomputers. It was not clear when the R&D line would begin operations or whether CXMT plans to move to large-scale commercial manufacturing. CXMT and YMTC did not immediately respond to requests for comment, Reuters reported.

Market Implications and Competition

The move marks a significant expansion for CXMT, which has historically specialized in dynamic random access memory (DRAM), used for processing tasks. Entering the NAND market, which is used for long-term data storage, would pit it against established global players and its primary domestic counterpart.

The global NAND market is currently led by:

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• Samsung Electronics, with a 29.3% market share by revenue in the second quarter, according to research firm TrendForce.
• SK Hynix
• Micron Technology

This expansion also blurs the lines between China's so-called "twin stars" of memory manufacturing. CXMT has been the country's DRAM champion, while YMTC is its leading NAND producer. Reuters previously reported that YMTC has also explored entering the DRAM market.

Broader Industry Context

CXMT's planned entry comes as strong demand from artificial intelligence servers has tightened the global memory supply, a situation some industry executives believe will persist through at least 2027. Analysts at TrendForce noted that manufacturers have prioritized capital spending on DRAM and high-bandwidth memory (HBM), which has limited new NAND flash capacity and worsened shortages in that segment.

The initiative also aligns with Beijing's broader goal of building a self-sufficient semiconductor industry to counter U.S. export restrictions. Washington placed YMTC on its trade-restricting Entity List in 2022 and has since tightened controls on China's access to advanced chips.