Although memory chips are not as popular when compared to CPUs, GPUs, and SoCs, they are the largest category in the semiconductor industry, accounting for more than one-third of the market share. There are many types of memory chips, among which DRAM memory, NAND flash memory and flash memory are the most important types, and among these memory chips, DRAM and NAND occupy more than 95% of the market share, becoming the two types with the largest number and the highest share.
Although the importance of memory chips is self-evident, China's dependence on memory chips has been very high in the past few years. According to the data, memory chips account for more than one-third of China's imports of chips from abroad. However, before 2017, China was completely unable to manufacture DRAM and NAND flash memory on its own, and had to rely on imports to meet demand. With the establishment of the three major memory chip bases, China has begun to gradually narrow the gap with foreign countries in the field of memory chips. Among them, YMTC focuses on the R&D and production of NAND flash memory, while Changxin is committed to the development of DRAM memory. However, Fujian Jinhua's projects in this area have stalled.
YMTC's impressive NAND flash memory technology is well known in the industry. Last year, they took the lead in the global mass production of 232-layer 3DNAND chips, surpassing competitors such as Micron and Samsung, and were hailed as the first company in China to surpass Europe, America, Japan and South Korea manufacturers in chip technology. However, the United States took repressive measures against YMTC after being involved in the first friction, which brought great challenges to the company's development.
Recently, another memory chip manufacturer in China showcased their achievements and officially launched the LPDDR5 series of DRAM products, including 12GBLPDDR5 chips in POP package and 6GBLPDDR5 chips in DSC package. LPDDR5 is a type of DDR5 product, the difference is that it is a low-power DRAM memory, mainly used in portable consumer electronics such as mobile phones and tablets. LPDDR5 products account for about half of all DRAM products, and this is because the sales of mobile phones, tablets and other products are very large. At present, mobile phones and tablets generally use advanced LPDDR5 products, while Changxin can only produce LPDDR4 before, which is slightly backward in comparison, and domestic mobile phone manufacturers often purchase products from brands such as Micron, SK hynix and Samsung, and do not choose domestic memory chips. However, with the launch of LPDDR5 products, domestic memory chips are expected to be replaced, so Changxin has successfully verified with the models of domestic mobile phone brands such as Xiaomi and Transsion. Obviously, in the coming days, many domestic mobile phones will begin to use Changxin's memory chips to achieve domestic substitution. Considering that China's smartphone market accounts for 60% of the global share and the tablet market accounts for 40% of the global share, if these domestic products can generally choose domestic memory chips, it will reduce a large amount of import demand.
However, although Changxin Storage has made certain breakthroughs, we should still face up to the gap with foreign manufacturers. In fact, Samsung began mass production of the world's first 12GblPDDR5 mobile DRAM in July 2019, which means that Changxin Storage is still a full four years behind in technology. Therefore, although we have made a breakthrough, we still need to develop cautiously, after all, compared with foreign manufacturers, there is still a gap between Changxin Storage, and we still need to continue to work hard.
Memory chips play a central role in the semiconductor industry. While it may not have received as much attention as chips such as CPUs, GPUs, and SoCs, it is the largest category of products in the largest category, with more than a third of the market share. Memory chips include a variety of types, such as DRAM memory, NAND flash memory and flash memory, among which DRAM and NAND occupy more than 95% of the market share, becoming the two most important types.
It is worth noting that memory chips have an important position in China's semiconductor industry. According to the data, memory chips accounted for more than one-third of China's imports of chips from abroad in the past few years. However, prior to 2017, China did not have the capacity to produce DRAM and NAND flash memory and was completely dependent on imports. But with the establishment of China's three major memory chip bases, the situation has begun to change. Among them, YMTC specializes in NAND flash memory, while Changxin is committed to the R&D and production of DRAM memory. Although Fujian Jinhua's project is currently stagnant, China's memory chip industry as a whole is gradually narrowing the gap with foreign giants.
YMTC excels in NAND flash technology, which has been widely recognized. Last year, they became the first company in the world to successfully mass-produce 232-layer 3DNAND chips, an achievement that surpassed well-known manufacturers such as Micron and Samsung, and they were generally highly praised. However, after the United States became involved in the war, it took repressive measures against YMTC, which brought great challenges to the company.
Now, another memory chip manufacturer in China has demonstrated their achievements and launched the LPDDR5 series of DRAM products, including different specifications of POP package and DSC package. LPDDR5 is a low-power DRAM memory that is mainly used in portable consumer electronics such as mobile phones and tablets. About half of the market share of all DRAM products is occupied by LPDDR5. In view of the huge sales of mobile phones, tablets and other products, the adoption of advanced LPDDR5 products has become a mainstream trend. Changxin could only produce LPDDR4 before, which was relatively backward;Therefore, domestic mobile phone manufacturers have been choosing memory chips from foreign brands such as Micron, SK hynix and Samsung. Now, with the release of LPDDR5 products by Changxin, domestic substitution is expected to be realized. Changxin has successfully cooperated with domestic mobile phone brands such as Xiaomi and Transsion. China's smartphone market accounts for 60% of the global market, while the tablet market share reaches 40%. If these domestic products can use Changxin's memory chips, they will be able to greatly reduce the demand for imported products.
However, although Changxin Storage has made certain breakthroughs, we still need to recognize the gap between us and foreign manufacturers. In fact, Samsung began mass production of the world's first 12GblPDDR5 mobile DRAM in July 2019, while Changxin Storage is still four years behind in this field. Therefore, although we have made breakthroughs, we still need to maintain a humble and steady attitude towards development. Compared with large foreign manufacturers, Changxin Storage still has a certain gap, and it needs continuous efforts to catch up.
As an important part of the semiconductor industry, memory chips play a vital role in modern society. While memory chips may not be as much of a spotlight as CPUs, GPUs, or SoCs, they account for the largest number of products in the industry, with more than one-third of the market share.
As one of the world's largest consumer electronics markets, China has always had a great demand for memory chips. However, in the past few years, China has become highly dependent on memory chips, and almost all memory chips need to be imported from abroad. To a certain extent, this restricts the development of the domestic semiconductor industry. However, with the rise of companies such as Changxin Storage and Yangtze Storage, China has begun to gradually narrow the gap with foreign giants in the field of memory chips.
YMTC has made an important breakthrough in NAND flash memory technology, successfully mass-produced 232-layer 3DNAND chips, and surpassed competitors in Europe, America, Japan and South Korea in chip technology. However, the United States has taken repressive measures against YMTC, which has brought great challenges to the company's development. At the same time, Changxin, another memory chip manufacturer in China, has also made progress and launched the LPDDR5 series of DRAM products, which will help replace domestic mobile phones.
However, compared with large foreign manufacturers, there is still a gap in China's memory chip industry, and we need to continue to work hard to narrow this gap. Although certain breakthroughs have been made, we should remain humble and strive for development. With a large share of the global smartphone and tablet market, the use of domestic chips will reduce dependence on imports and bring more opportunities and competitive advantages to China's semiconductor industry.