Abstract:
CNBC issued an article on Tuesday, focusing on the technological breakthroughs made by Changxin Storage. The article stated that Changxin Storage may not be so well-known, but its technological breakthroughs caused the stocks of global storage giants to plummet collectively.
Changxin Storage
CNBC said that Changxin Memory is the main competitor of global memory chip manufacturers. Current industry giants include Micron, SK Hynix and Samsung. But last weekend, Changxin Storage announced that it had made progress in the research and development of its new architecture. This architecture enables more data to be stored in less space, thereby increasing storage density.
On Tuesday, Micron shares fell 3.62%. Shares of SK Hynix, which is listed in South Korea, closed down 10%, and Samsung Electronics fell 7.4%. Other memory chip-related stocks also fell, including SanDisk, Seagate and Western Digital.
New technology breakthrough
CNBC said that before its blockbuster IPO this summer, Changxin Storage was little known outside the Chinese market. But after it was launched in July this year, it quickly attracted global attention. The company’s stock price soared nearly 466% on the first day of listing on the Shanghai Science and Technology Innovation Board, and it once became the company with the highest market value among Chinese listed companies at the time.
CNBC pointed out that after Changxin Memory went public, one of the most concerning issues in the market was whether the company could narrow the technology gap with Micron, Samsung and SK Hynix, especially in the field of high-bandwidth memory (HBM), which is a key component of AI chip systems.
Micron shares closed down 3.62%
However, according to domestic media reports, Cao Kanyu, president of Changxin Memory, revealed a new DRAM technology progress at the 4th Integrated Chip and Chip Conference on October 10. Cao Kanyu introduced the DRAM architecture called 4F² and said that Changxin Memory is expected to launch a new generation of DDR5 RDIMM products using this technology by the end of the year.
Cao Kanyu said that this architecture has made innovations in DRAM storage array transistors. VSG (Vertical Surrounded Gate) transistors adopt a vertical surrounding channel structure to achieve stronger gate control and solve the pain points of leakage and short channel effects. The vertical transistors help shrink the area and increase storage density.
CNBC stated that the new architecture design is based on "4F²" technology and can achieve higher storage density. SK hynix is also advancing 4F² design and announced a roadmap for developing this technology in 2025.
Analysts generally believe that Changxin Storage lags behind global competitors in the research and development of cutting-edge storage technology. Therefore, any news about its technological breakthroughs could significantly affect investors' perceptions of its global competitors' market advantages.
Market share growth
Despite the challenges of export controls, Changxin Storage has made significant progress in the market.
A report released by HSBC last Thursday showed that Changxin Memory’s share of the global DRAM market has risen to about 10%, up from about 4% a year ago.
Citigroup analysts said in a report in August: "The U.S. government is unlikely to allow memory chips made in China to be sold in the United States, but products sold to data centers in other regions such as Europe may indirectly affect Micron."
Apple has begun testing Changxin Memory’s DRAM chips for use in devices sold in China, and has been lobbying the U.S. government to allow wider use of the company’s products, the Financial Times reported in July, citing people familiar with the matter.
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