YMTC and CXMT eye HBM collaboration to boost China’s AI memory push

Yangtze Memory Technologies Corp. (YMTC), China’s leading NAND flash maker, reportedly plans to enter the DRAM market. The company aims to partner with ChangXin Memory Technologies (CXMT) to focus on high-bandwidth memory (HBM) for AI accelerators. If they proceed, the partnership would unite China’s top NAND and DRAM players. The move reflects HBM’s growing central role in the industry.

U.S. policy shifts add complexity. The Bureau of Industry and Security’s December 2024 rulemaking added explicit controls on HBM and further tightened access to chip making tools, which complicates China’s push to scale advanced memory. Licensing around China fabs has also become more granular; for example, reports say TSMC’s Nanjing plant lost fast-track status. As a result, export rules now directly shape the timing and scope of any local HBM effort.

Capability gaps remain. CXMT has reportedly produced HBM2 and is moving quickly toward HBM3, with Chinese sources suggesting production could start between 2026 and 2027. Analysts still place CXMT a few years behind Korean competitors, though progress is speeding up. The gap is significant, but China could build a strong local supply if packaging and integration improve at the same pace.

YMTC brings hybrid bonding expertise, not DRAM experience. Its Xtacking architecture uses wafer-to-wafer bonding and has earned positive third-party reviews. The approach fits HBM as stack heights increase and heat management becomes important. A local packaging ecosystem is taking shape. CXMT and Wuhan Xinxin are developing HBM packaging, and Tongfu Microelectronics has begun assembly. Advanced packaging, which connects memory to processors, now sits at the core of HBM manufacturing.

Other reports say YMTC plans to buy equipment for DRAM research and development. The company may team with CXMT to develop next-generation DRAM for HBM and to expand production in the short term. Experts view the potential partnership as a long-term bid to compete with South Korean firms. Limited access to tools and customer qualification requirements will likely push early Chinese HBM products toward domestic customers.