CXMT reportedly plans 3D NAND flash production for SSDs
According to a Reuters report citing sources familiar with the matter, China's leading DRAM manufacturer CXMT is considering entering the 3D NAND flash market. The company is said to be planning a research and development production line at its second fab near Beijing, though the facility has not yet broken ground. CXMT has not officially confirmed these plans, and any move into NAND would put it in direct competition with domestic rival YMTC.
CXMT's reported move into 3D NAND would mark a significant strategic shift for a company that has built its success on DRAM manufacturing. The company generated $22.41 billion in revenue and $11.57 billion in net profit in the first half of the year, giving it substantial resources to fund new initiatives. However, 3D NAND requires entirely different process technologies and manufacturing equipment than DRAM, meaning significant new investment.
The company has reportedly already discussed its NAND plans with potential customers, including a newly formed firm targeting AI and supercomputing storage applications. CXMT's second Beijing fab has not yet broken ground, suggesting any production line remains two to three years from operation. Meanwhile, domestic rival YMTC is reportedly exploring DRAM production, suggesting both Chinese memory makers aim to become full-line suppliers like Samsung, Micron, and SK hynix.
If CXMT's 3D NAND plans materialize, the global memory market could see increased supply and potential price pressure in the SSD segment. Enterprises building AI infrastructure may gain additional sourcing options, while consumers could benefit from more competitive storage pricing. However, the company's focus on advanced DRAM and HBM3E for AI applications suggests NAND may remain a secondary priority, and the timeline of two to three years means any market impact would be gradual.