CXMT Launches HBM3E with 3 to 5 Years Delay and 25% Yield

The Chinese manufacturer CXMT has produced HBM3E memory for the first time, which is essential for AI, but it remains behind global leaders and is facing production difficulties. Chinese designers are planning integration starting in 2027, while U.S. restrictions limit access to advanced HBM.

CXMT: Technical Delays, Low Yields, and Lack of Dedicated Funding

CXMT is reportedly facing a technological delay of three to five years and is encountering manufacturing issues, with yield rates estimated at nearly 25% in June according to some analyses. Upon its IPO in Shanghai, the company raised $8.6 billion, but the prospectus indicates that none of this amount is allocated to HBM.

Expected Adoption by T-Head and Cambricon Amid U.S. Restrictions

Alibaba's T-Head and Cambricon are currently testing this memory and plan to integrate it into products starting in 2027. U.S. export rules limit the purchase of advanced HBM by China, making local production strategic for domestic players.

Initial HBM3E Production at CXMT, a Generation Behind Leaders

CXMT is producing HBM3E in small quantities for the first time, according to two internal sources cited. This advancement places CXMT a generation behind Samsung, SK Hynix, and Micron, which are already mass-producing HBM4. HBM is a stacked memory positioned close to the processor, necessary for training and executing large AI models.