News

GigaDevice and CXMT to expand DDR4 production capacity

Wednesday, April 1, 2026 at 03:51 AM

GigaDevice and CXMT are reportedly expanding their production capacity for DDR4 memory, indicating a strategic push into mature DRAM nodes. This expansion suggests increasing competition in the legacy memory market.

Context

China’s leading DRAM manufacturer, CXMT, is aggressively expanding its DDR4 production capacity in collaboration with GigaDevice to capture market share as global leaders Samsung, SK Hynix, and Micron pivot toward higher-margin HBM and DDR5. This expansion comes as a severe global supply crunch, driven by AI server demand, has pushed legacy memory spot prices up by nearly 50%. By securing two-year wafer deals and leveraging CXMT’s recent 150 billion yuan valuation ahead of its 2026 STAR Market IPO, the companies aim to solidify China’s domestic supply chain. While global rivals are expected to phase out DDR3 and DDR4 production by late 2025, CXMT and GigaDevice are positioning themselves to dominate the legacy segment, which still holds a 44.78% market share. This strategic move follows GigaDevice’s record 2025 financial results and its 1.5 billion yuan direct investment in CXMT, ensuring a stable supply of DRAM foundry services for Chinese OEMs.

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