China Closes HBM Gap With Korea To Three Years

A report from Korean media suggests China is closing the gap with South Korea in high-bandwidth memory (HBM) production to just three years. The shift follows U.S. sanctions on advanced extreme ultraviolet (EUV) machines, which have pushed Chinese firms to seek workarounds. At the center of this progress is CXMT, a Chinese memory manufacturer that has achieved technology parity with Samsung and SK hynix on HBM3 chips.

HBM3 memory powers NVIDIA’s H100 AI GPUs, which were among the first restricted for sale in China. To comply with U.S. rules, NVIDIA developed the H20 variant, which uses 96 GB of HBM3 memory compared to the H100’s 80 GB. This change highlights the growing demand for HBM in AI applications, a trend that has created opportunities for Chinese firms to gain ground.

Industry sources cited by the Seoul Economic Daily note that Chinese memory production lags three generations behind Samsung and SK hynix. However, CXMT has now reached parity in HBM3 manufacturing. Despite yield challenges, the company claims it can produce the chips using current technology. This progress has been accelerated by government support aimed at boosting domestic production capacity.

CXMT plans to expand its output to 300,000 12-inch wafer units by 2026, according to the same sources. Yet, Samsung and SK hynix remain ahead. The latest NVIDIA GPUs already use HBM3e memory, and HBM4 is expected to be in contracts by year-end. HBM4 would nearly double the data capacity of HBM3, presenting a new hurdle for Chinese manufacturers.

Manufacturing AI GPUs also requires advanced packaging, a process currently dominated by Taiwan’s TSMC. This reliance on external foundries complicates China’s efforts to fully control the supply chain. Meanwhile, CXMT’s IPO approval signals a push to raise over $4 billion in capital, which could fund further expansion and research.

The report shows a broader shift in the memory industry. While China has made strides in HBM3, the gap in advanced technologies like HBM4 and packaging remains significant. The IPO may help CXMT bridge this gap, but challenges in yield and process complexity persist. Industry analysts suggest the next few years will determine whether China can sustain its momentum against established players.

For now, the focus remains on HBM3. CXMT’s ability to produce the chip at scale could reshape market trends, particularly as demand for AI chips continues to grow. Whether this translates to long-term competitiveness against Samsung and SK hynix remains to be seen, but the progress highlights the evolving setting of global semiconductor manufacturing.