China’s ChangXin Memory Technologies (CXMT) began small-scale production of HBM3E chips, marking its entry into the AI memory market.

China’s leading memory manufacturer, ChangXin Memory Technologies (CXMT), has begun producing HBM3E chips in small quantities for the first time. According to a report from The Information citing two industry insiders, this high-speed memory is widely integrated into current AI processors. HBM, or High Bandwidth Memory, consists of stacked memory chips positioned directly alongside processors and is essential for training and running large-scale artificial intelligence models.

This milestone places CXMT one generation behind Samsung, SK Hynix, and Micron, which are currently mass-producing HBM4. Meanwhile, domestic chip developers Alibaba’s T-Head and Cambricon are actively testing the memory and plan to deploy it in commercial products beginning in 2027. Securing a reliable domestic supply could significantly reduce a major bottleneck for China’s indigenous AI chip development, as U.S. export controls restrict access to advanced memory modules.

Despite the breakthrough, CXMT remains three to five years behind technologically and continues to grapple with low production yields. In June, analytics firm SemiAnalysis estimated the yield rate at approximately 25 percent. Financially, the company raised $8.6 billion during its Shanghai initial public offering; however, according to its prospectus, none of those proceeds have been allocated specifically toward HBM development.