Samsung, SK Hynix Shares Plunge Over 7%, KOSPI Falls 6% As China's CXMT Claims Memory Chip Breakthrough
· Free Press Journal
Global semiconductor stocks witnessed sharp selling pressure after Chinese chipmaker ChangXin Memory Technologies (CXMT) claimed a technological breakthrough that could intensify competition in the memory chip industry.
South Korea's benchmark KOSPI index plunged 6% on Tuesday, recording its steepest single-day decline since July. A broader index tracking Asian equities excluding Japan dropped more than 2%.
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The sell-off followed concerns that CXMT could challenge established memory chip manufacturers, including Samsung Electronics and SK Hynix.
China's leading memory chipmaker ChangXin Memory Technologies (CXMT) plans to launch a next-generation DDR5 RDIMM server-geared memory chip that leverages 4F² dynamic random-access memory (DRAM) architecture by the end of 2026, the company said at an industry conference on… pic.twitter.com/fEk9ZP9n1f
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China's CXMT Breakthrough Triggers Selloff
CXMT President Cao Kanyu announced plans to introduce a memory chip featuring a 4F² architecture at an industry conference in Shanghai over the weekend.
The proposed technology aims to increase computing capacity within a smaller chip area, potentially improving efficiency in data centre servers.
According to Cao, the company expects to launch the product before the end of the year. A CXMT spokesperson confirmed his remarks.
However, the technological claim has not been independently verified, and the company has not disclosed detailed specifications.
The existing 6F² memory cell design uses an area equivalent to six times the square of a chip's minimum feature size.
Reducing that footprint to 4F² could allow manufacturers to accommodate more memory cells within the same space.
Samsung and SK Hynix have also been working towards similar technological improvements.
Samsung, SK Hynix Shares Slide
Shares of Samsung Electronics and SK Hynix declined more than 7% each in South Korean trading.
The losses followed a 4% overnight fall in US memory chipmaker Micron Technology.
CXMT's announcement highlighted China's efforts to strengthen domestic semiconductor capabilities despite American restrictions on advanced chipmaking equipment.
If verified, the development could represent a significant technological achievement for the Chinese manufacturer.
The company has expanded its industry presence following a major initial public offering during the summer.
Meanwhile, rising demand for artificial intelligence (AI) infrastructure has supported substantial investment in semiconductor manufacturing over the past four years.
However, concerns about concentrated spending and uncertain investment returns have periodically unsettled investors.
CXMT's latest claim has added competitive uncertainty to an industry central to global AI development.