Chinese Memory Now Twice as Cheap as Samsung and SK Hynix Products

Chinese memory manufacturer CXMT has decided to lower DRAM prices. This appears to be a more aggressive market dominance tactic, given that global DRAM prices have been steadily rising. 

CXMT is offering its DDR4 chips at half the price of recognized leaders, Samsung and SK Hynix.

Why Prices Are Rising Right Now

The market situation is favoring Chinese suppliers. Contract prices for 8-gigabit DDR4 chips jumped by 23.7% in the last month alone, and have increased nearly eightfold in a year. 

It looks like CXMT took advantage of the moment amid ten months of continuous memory cost growth. To strengthen its position in the segment, the manufacturer is lowering prices and building a customer base.

Global Brands Now Collaborate with China

The success of Chinese companies in the memory market is driven not only by low prices but also by their readiness to supply memory in the required volumes. 

HP Inc. and Dell are already actively testing CXMT products. Acer and ASUS are preparing to follow suit and integrate Chinese chips into their budget and mid-range lines.

A Threat to Korean Companies

Samsung and SK Hynix are currently focused on producing high-margin HBM memory (for AI systems), but despite this, 50% of their capacity is still occupied by DRAM production. Losing even a small portion of the mass market could seriously impact the revenue of the South Korean giants.