ChangXin Memory Technologies (CXMT) has begun producing High Bandwidth Memory 3E chips in small quantities, a development reported by The Information based on two insiders. This high-speed memory is essential for training and running large AI models, and its presence places CXMT a generation behind Samsung, SK Hynix, and Micron, who are already mass producing HBM4. While Alibaba’s T-Head and Cambricon are testing the new memory for use in products starting in 2027, the move primarily addresses restrictions on purchasing advanced chips from US suppliers. Technical gaps remain significant, with CXMT estimated to be three to five years behind competitors and struggling with low yields around 25 percent in June. The company raised $8.6 billion during its Shanghai IPO, yet none of those funds are earmarked for HBM development according to the prospectus.
The production marks a concrete step toward reducing reliance on foreign technology under current export controls. However, low yields suggest that scaling these chips remains a major hurdle for domestic AI ambitions. The financial allocation indicates that HBM is not the primary focus of recent capital raising efforts.
- Yields estimated at 25 percent in June
- Alibaba and Cambricon plan usage from 2027
- No HBM funding in CXMT’s IPO prospectus
