China's Memory Makers Gain Advantage
China-based memory makers have an advantage over American and Taiwanese suppliers due to government guidance, securing local supply while overseas peers prioritize AI margins
Key points
- China's government guides domestic memory makers to support local industries, including DRAM and SSD module producers, smartphones, and PCs
- Chinese manufacturers, such as CXMT and YMTC, may be obliged to prioritize local supply over foreign shipments
- The Big Three memory makers prioritize shipments to AI and data center customers, driving up prices for premium chips
- Sales of memory modules and solid-state drives have declined drastically in retail due to increased prices
- Suppliers of smartphones and PCs have also been affected by the shift in memory supply
- State support allows Chinese manufacturers to maintain a healthier local market, according to Nelson Duann, SVP of Silicon Motion
China's memory makers have gained an unexpected advantage over their overseas peers. The country's government guidance for domestic memory makers to support local industries has secured a stable supply of chips for manufacturers of DRAM modules, SSDs, PCs, and smartphones. In contrast, foreign suppliers have been prioritizing shipments to AI and data center customers, which has driven up prices for premium chips. As a result, sales of memory modules and solid-state drives have declined drastically in retail. Chinese manufacturers, such as CXMT and YMTC, may be obliged to prioritize local supply over foreign shipments, allowing them to maintain a healthier local market. The shift in memory supply has also affected suppliers of smartphones and PCs, highlighting the significance of China's government guidance in the memory market.
Sources
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