CXMT and YMTC plan to jointly invest RMB 63 billion in capital expenditures to expand production lines; if the plan is completed on schedule, CXMT’s DRAM monthly production capacity by the end of 2026 will be close to 350,000 wafers, just about one-tenth behind Micron’s (Micron) concurrent estimate of 375,000 wafers.
CXMT’s DUV Multiple-Exposure Pathway
According to reports, since CXMT is unable to obtain EUV (extreme ultraviolet) lithography equipment, the solution it is using is to switch to older-generation DUV (deep ultraviolet) equipment and combine it with multiple-exposure technology—meaning the same wafer is exposed multiple times, trading additional process steps for the circuit fineness that would otherwise require EUV. The cost is higher yield pressure and higher per-wafer production cost; but the payoff is shipment-capable DDR5 (8000 MT/s) and LPDDR5X memory modules, directly entering the market segment where AI servers are most in shortage.
In addition, CXMT’s roughly 12-month efficiency in building cleanrooms gives it a time-gap advantage in an environment where global equipment delivery lead times have been extended—while CXMT runs its production tools for yield, its rivals may still be waiting for equipment delivery.
Localization of China’s Semiconductor Equipment and Technical Dispersion
According to reports, the impact of this expansion on the supply chain landscape includes: China’s current semiconductor equipment domestic procurement rate is about 23.2% (more than 70% still relies on imports); but CXMT’s 2026 procurement estimate will generate nearly RMB 10 billion in new business for domestic suppliers, forming a positive feedback loop of “the market nurtures suppliers, and suppliers in turn boost yields,” with the import-dependency ratio expected to decline year by year.
On the technical front, the Chinese government is pushing CXMT to transfer its DRAM technology IP (process patents and process know-how) to new companies including Fujian Jinhua, Shengwei Xu, and a subsidiary of Yangtze Memory, Xinxin. The goal is to dilute the effectiveness of U.S. sanctions’ single-point targeting and to prepare in advance for future efforts to enter the EU and U.S. markets.
Common Questions
How can CXMT produce advanced DDR5 without EUV equipment?
According to reports, CXMT uses DUV (deep ultraviolet) equipment combined with multiple-exposure technology: repeatedly exposing the same wafer multiple times to add more process steps to achieve more precise circuit patterns. The cost is higher yield pressure and per-unit cost, but it enables CXMT to produce DDR5 (8000 MT/s) and LPDDR5X memory modules, directly supplying the AI server market.
How does CXMT’s DRAM monthly production capacity at the end of 2026 compare with Micron’s?
Analysts point out that if CXMT’s expansion plan is completed on schedule, monthly capacity by the end of 2026 will be close to 350,000 wafers; Micron’s concurrent estimate is about 375,000 wafers per month, a gap of less than one-tenth (about 6.7%). For Yangtze Memory’s NAND, the estimated monthly production capacity after full load is expected to exceed 170,000 wafers. The specific figures should be confirmed with each company’s official financial reports and the latest industry research institution reports.
What impact does China’s memory expansion have on the global semiconductor equipment market?
SEMI (the International Semiconductor Industry Association) predicts that the global semiconductor equipment market will grow from $116.6 billion in 2024 to $155.6 billion in 2027, with the overall market expanding; the expansion plans of Chinese manufacturers also play an important role in this growth. However, the three major global memory makers (Samsung, SK Hynix, Micron) are simultaneously increasing capital expenditures, and the competitive landscape is continuously intensifying.
