CXMT to make AI memory despite yields as low as 20%

Production despite low yields

According to a Reuters report published on Wednesday, 28 October, CXMT, China's largest memory chipmaker, plans to start making HBM3E, the high-bandwidth memory used in AI chips. Two people familiar with the matter told the outlet that only 20% to 30% of the chips it produces are usable.

Why HBM3E matters

HBM (High Bandwidth Memory) is a specialised type of memory placed next to AI accelerators to move data at very high speeds. HBM3E is the newer, faster version of that family. Without these chips, training and running large language models is practically impossible.

What the yield problem means

A 20-30% yield means only one in three to five chips produced is sellable. That drives up manufacturing costs and limits supply volume. Still, CXMT's entry into the field could, over time, shift a market that has so far been dominated by South Korean and US manufacturers.

Reuters notes that TNW has not independently verified the report.