We expected Chinese memory makers to crash prices. Instead, AI demand has flipped the script entirely.
For years, the assumption was simple: once Chinese memory makers like CXMT and YMTC scaled up, global DRAM and NAND prices would fall. According to a Reuters investigation, the opposite is happening. AI-driven demand has gotten so intense that ChangXin Memory Technologies (CXMT) — China’s homegrown DRAM maker — is now reportedly charging more than Samsung for some 64GB DDR5 chips used in AI servers.
This adds a new layer to the memory price surge TechnoSports has been tracking across the device industry this year, one that’s already pushed up costs for phones, laptops, and now AI infrastructure itself.
CXMT vs. Huawei: A Power Struggle Over Pricing
The clearest sign of CXMT’s new leverage came from a standoff with Huawei. Reuters reports CXMT spent months raising prices on Huawei and refused to back down despite repeated pushback. Tensions boiled over in June, when CXMT reportedly ordered engineers from Huawei-linked equipment vendor SiCarrier to leave its core R&D cleanrooms in Hefei without warning — engineers who had not been allowed back since. CXMT, Huawei, and SiCarrier did not respond to Reuters’ requests for comment.
That CXMT was willing to risk a rift with a company as powerful as Huawei says a lot about how much pricing leverage it now holds.
Billion-Dollar Deals Tell the Same Story
CXMT isn’t just holding firm on price — it’s landing major long-term contracts. The company has reportedly signed a five-year deal worth more than $7 billion with ByteDance, alongside another multi-billion-dollar agreement with Tencent, both for AI-related memory supply.
| Company | Deal Value | Duration |
|---|---|---|
| ByteDance | $7 billion+ | 5 years |
| Tencent | $3 billion+ | Multi-year |
Rising Power, Rising Scrutiny
CXMT has grown into the world’s fourth-biggest memory maker, built on the back of the global AI data center boom that’s transformed memory chips from a low-margin commodity into one of the most contested components in tech. But that rise is drawing attention in Washington too — YMTC is already under US sanctions, and industry watchers see CXMT as a likely next target given how fast China’s memory sector is scaling.
Still Catching Up on the Cutting Edge
It’s worth noting CXMT and YMTC still trail Samsung and SK Hynix on the most advanced chip technology — some earlier testing has found CXMT’s DDR5 memory less consistent for overclocking than Western rivals’. But the competitive edge has shifted: Chinese memory makers no longer need to win purely on price. They can now choose customers and dictate terms, a dynamic that will likely keep pressuring memory prices across smartphones, laptops, and AI hardware alike.
Bottom Line
The idea that Chinese memory makers would flood the market and crash prices hasn’t played out. Instead, AI demand has made memory chips scarce enough that even CXMT can out-price Samsung and stand up to Huawei. For buyers everywhere, that likely means memory costs stay elevated for a while yet.
Based on Reuters reporting citing sources familiar with the matter. CXMT, Huawei, and SiCarrier did not respond to requests for comment.
