According to reports, Samsung is stopping production for its older LPDDR4 and LPDDR4X RAM chips. The company is focusing on faster, more profitable LPDDR5 standards amid the AI boom. However, this has also left many smartphone manufacturers and chipset designers in a difficult position. That said, where one sees an exit, others see a massive opportunity. It seems that Chinese suppliers are ready to fill the gap left by Samsung in LPDDR4 RAM production.
Samsung’s Exit, China’s gain: The $825 million bet on “legacy” LPDDR4 memory
Samsung’s decision to halt new orders for legacy RAM has caused a stir among mid-range and entry-level device manufacturers. Upgrading to LPDDR5 isn’t just a matter of swapping a chip; it often requires redesigning hardware. Of course, this increases both time and costs. Well, according to ETNews, Chinese DRAM giant CXMT is stepping in to fill this gap.
In a strategic “tag-team” move, CXMT is partnering with GigaDevice, a local firm known for flash memory and microcontrollers. GigaDevice is reportedly planning to purchase roughly $825 million worth of DRAM from CXMT this year. This represents a staggering six-fold increase compared to their previous spending. Under this agreement, CXMT handles the complex manufacturing process while GigaDevice focuses on product development and distribution (via Wccftech).
Why the LPDDR4 market still matters
In today’s tech industry, high-speed AI chips take the biggest headlines. However, a vast portion of the global market still relies on LPDDR4. Affordable phones, automotive systems, and IoT devices depend on this older tech to keep prices low. Now, CXMT and GigaDevice are becoming the go-to option for them.
The movement is also about relationship building. These Chinese companies will now support brands like Qualcomm and MediaTek during a global DRAM crisis. This way, they are solidifying long-term partnerships that could eventually lead to bigger orders in the future.
The timing for this expansion is particularly favorable. Recently, CXMT and other Chinese manufacturers got some restrictions removed in the U.S. This will allow them to grow their global clientele more freely.
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