China’s CXMT Prepares to Enter NAND Flash Memory Market Amid Global Shortage
Chinese memory-chip manufacturer ChangXin Memory Technologies (CXMT) is preparing to enter the NAND flash-memory market, according to people familiar with the company’s plans. The move would expand CXMT beyond its core DRAM business and place it in direct competition with major global suppliers including Samsung Electronics, SK Hynix and Micron, as well as China’s Yangtze Memory Technologies (YMTC).
The planned expansion comes as artificial intelligence infrastructure drives strong demand for memory chips and puts pressure on global supplies. Industry executives expect the broader memory shortage to continue through at least 2027, while NAND supply tightness is expected to ease only later next year.
CXMT Plans NAND Research and Development Line
CXMT plans to establish a research-and-development production line for NAND flash memory at its new facility in Beijing, according to two people familiar with the matter. The company has also established a research institute in the Chinese capital, where NAND development is among the projects being pursued.
CXMT has reportedly discussed its NAND plans with potential customers. One newly established startup is expected to use CXMT NAND chips in storage products designed for AI systems and supercomputers, although the company involved was not identified.
There is currently no confirmed timeline for when the R&D line will begin operating. It is also unclear whether CXMT will eventually move from research and trial production into large-scale commercial NAND manufacturing.
Move Takes CXMT Beyond Its DRAM Business
CXMT has primarily focused on DRAM, a type of memory used as working memory in smartphones, PCs, servers and other computing systems. NAND flash serves a different role, providing non-volatile storage for devices such as smartphones, solid-state drives and data-center systems.
Entering NAND would significantly broaden CXMT’s product portfolio. It would also bring the company closer to YMTC, which has established itself as China’s leading NAND manufacturer. The two companies have traditionally focused on different areas of the memory market, but that separation is increasingly narrowing as both expand their product ambitions.
AI Demand Tightens the NAND Market
The expansion comes during a period of unusually strong memory demand linked to AI servers. Memory manufacturers have been directing significant investment toward DRAM and high-bandwidth memory (HBM), which are heavily used in AI infrastructure. That has limited additional investment in NAND capacity and contributed to tighter supply.
Samsung remained the largest NAND supplier by revenue in the second quarter, with a 29.3% market share, according to TrendForce data cited by Reuters. SK Hynix ranked second, followed by Micron. CXMT's potential entry would add another major manufacturer to an already competitive market.
CXMT Expands China’s Memory-Chip Push
CXMT’s NAND plans also fit into China’s broader effort to strengthen domestic semiconductor manufacturing. CXMT and YMTC have received backing from national and local government investment programs as China seeks to reduce reliance on overseas suppliers for strategic chip technologies.
CXMT raised 57.92 billion yuan, or about $8.6 billion, in a July initial public offering, the largest IPO in Asia during 2026 at the time, according to Reuters. The company has also been planning additional manufacturing capacity in Beijing.
For now, CXMT’s NAND expansion remains at the development stage. Whether the company moves into large-scale commercial production will depend on its technical progress, customer demand and future investment decisions.
