News
Chinese memory manufacturers CXMT and YMTC abandon dumping strategy for pricing parity and DDR5 transition
Tuesday, February 3, 2026 at 09:30 PM
Chinese memory makers CXMT and YMTC have pivoted from low-cost dumping to pricing parity or premiums compared to Korean rivals. CXMT is shifting capacity from DDR4 to DDR5, reducing DDR4 output to 10,000 wafers per month while targeting high-bandwidth DDR5 production. YMTC is reportedly quoting NAND wafers at higher prices than SK hynix due to stable supply availability in China. YMTC's third-phase Wuhan fab is expected to start operations this year, though significant output is delayed until 2027.
Context
CXMT and YMTC have abandoned aggressive price dumping in favor of pricing parity and high-value product focus. CXMT is rapidly shifting resources toward DDR5, cutting its DDR4 output by 50% this quarter to 10,000 wafers per month, with remaining supply reserved for strategic partners like GigaDevice. This pivot bolsters profitability ahead of a planned IPO, with CXMT projecting annual net profits of up to 3.5 billion yuan, significantly ahead of its original 2026 break-even target.
In the NAND sector, YMTC is quoting prices up to $21.50 for 1Tb wafers, surpassing SK Hynix’s $20.00 benchmark. This shift highlights a seller-oriented market in China where government self-sufficiency policies allow domestic firms to prioritize supply stability over low costs. While YMTC is expanding its Wuhan facility, significant new capacity is not expected until 2027, ensuring sustained pricing power for Chinese manufacturers against Samsung Electronics and other global competitors.
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