Micron, SK Hynix and Samsung shares fall after Chinese CXMT statement — CNBC
Shares of Micron, SK Hynix and Samsung Electronics declined after China’s ChangXin Memory Technologies (CXMT) reported progress in developing a new memory-chip architecture. On Tuesday, Micron shares lost 3.62%, SK Hynix shares on the South Korean exchange closed down 10%, while Samsung Electronics fell 7.4%, CNBC reports.
CXMT, which CNBC calls China’s leading memory-chip maker, said it had advanced in developing an architecture that would make it possible to increase data-storage density — placing more information in less space. The company is a Chinese competitor to Micron, SK Hynix and Samsung in the memory market.
Shares of companies linked to the memory segment, including SanDisk, Seagate and Western Digital, also declined. Analysts believe CXMT still lags behind global competitors in advanced memory development, so reports of its technological progress may affect how investors assess the advantages of global manufacturers.
New memory architecture
CXMT, which CNBC calls China’s leading memory-chip maker, said it had advanced in developing an architecture that would make it possible to increase data-storage density — placing more information in less space. The company is a Chinese competitor to Micron, SK Hynix and Samsung in the memory market.
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CXMT’s market position
CXMT is headquartered in Hefei. The company was founded in 2016 and became more visible outside China after its initial public offering in July. On its debut day on Shanghai’s STAR Market technology board, its shares rose by nearly 466%.
According to HSBC, CXMT’s share of the global dynamic random-access memory, or DRAM, market increased to around 10%, compared with about 4% a year earlier. At the same time, the company faces difficulties accessing equipment for manufacturing the most advanced semiconductors because of US export restrictions, including those concerning EUV lithography machines made by the Netherlands’ ASML.
According to CNBC, CXMT plans to release a new server-memory product based on a new cell architecture by the end of 2026. This development is expected to provide higher data-storage density based on 4F square technology, which SK Hynix is also working on.
