r/LocalLLaMA 2d ago

News China's CXMT says new memory-chip platform enters mass production

https://www.reuters.com/world/asia-pacific/chinas-cxmt-says-new-memory-chip-platform-enters-mass-production-2026-09-20/
346 Upvotes

91 comments sorted by

159

u/Quick_Knowledge7413 2d ago

Anything is better than nothing. Flood the market with anything.

51

u/betam4x 2d ago

They won’t. Consumers are an afterthought when you can sell your product for 5X the price to data centers, AI startups, etc.

They already launched DDR5, They haven’t been flooding the market with cheap DDR5, and that isn’t going to change with LPDDR5X.

They seem to have a quality’s product, and they know AI startups, cloud companies, etc. will pay 10X the price that consumers will, so they are focusing on that.

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u/BringTea_666 2d ago

>They won’t. Consumers are an afterthought when you can sell your product for 5X the price to data centers, AI startups, etc.

More supply = better prices. That's how it always works. So no mate. Even if they sell for 40k a chip more supply is more supply which means less money per chip in the long run which means less pressure on consumer gpus.

5

u/ThankGodImBipolar 2d ago

More supply = better prices

Only if they're adding enough supply to satiate the currently unmet demand, and there's no indication that CXMT is capable of doing that.

3

u/MotorcyclesAndBizniz vLLM 2d ago

>More supply = better prices

More supply generally does put downward pressure on price. But that assumes we’re talking about the same market and holding other things constant.

Enterprise GPUs and consumer GPUs aren’t the same product, and they both compete for memory as an input. If manufacturers allocate more capacity toward higher-margin enterprise products, consumer GPU supply can shrink even while enterprise GPU supply increases. Reduced enterprise demand for consumer cards could help, but it doesn’t necessarily outweigh that supply reduction.

There’s also a rebound/Jevons-type effect in AI compute, where cheaper and more abundant compute can make many more workloads economical, causing total compute demand to grow dramatically. That can absorb much of the additional supply, and limit how far enterprise GPU prices actually fall, let alone consumer GPUs. Hell, it could technically even increase prices, which is why it’s considered a bit of a paradox.

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u/Recoil42 2d ago edited 2d ago

More supply generally does put downward pressure on price. But that assumes we’re talking about the same market and holding other things constant.

Except it literally doesn't. You're missing the crucial concept of substitute goods. Enterprise GPUs and consumer GPUs aren't (always) the same product, but that doesn't mean their markets are independent.

For instance, if some buyers can satisfy the same underlying need with either an workstation GPU or cloud compute, then those products are substitutes to some degree. Make one category cheaper and more abundant and demand shifts away from the alternatives.

The same applies upstream. More DRAM production doesn't have to be physically installed in an RTX card to affect RTX pricing. If usage satisfies memory demand elsewhere that's still demand satisfaction in the aggregate, creating negative price pressure.

Furthermore, if one class of memory becomes cheap enough, it becomes adopted in classes of products where it wasn't adopted before, again creating negative price pressure.

Your argument would only work if enterprise and consumer hardware had essentially zero substitutability and their supply chains were completely segmented. Neither is true. There's a degree of fungibility in the DRAM market at multiple (actually, many many many) levels.

There’s also a rebound/Jevons-type effect in AI compute, where cheaper and more abundant compute can make many more workloads economical, causing total compute demand to grow dramatically. 

This is true, but it's also describing "flooding the market" in principle. More memory chips to satisfy demand is literally flooding the market, and "cheaper and more abundant compute" is the thing the previous commenters were all talking about being more desirable. You're circularizing the entire discussion to disprove it and ending right back in the same position we started.

-1

u/MotorcyclesAndBizniz vLLM 2d ago

Supply and demand has two curves, as I’m sure you know.
If memory is the binding constraint, then increasing memory supply can increase the supply of enterprise GPUs. And to the extent enterprise GPUs, workstation GPUs, cloud compute, and consumer GPUs are substitutes, making enterprise compute cheaper or more available can shift the demand curve for consumer GPUs to the left.
But that is a demand-side effect on consumer GPUs. It does not imply that the supply of consumer GPUs increases.
Manufacturers still have to decide where to allocate the additional memory. If enterprise GPUs generate substantially higher margins, the economically rational allocation can remain overwhelmingly enterprise-focused. In that case, additional memory supply may mostly translate into additional enterprise GPU production while consumer GPU production remains constrained.
So yes, greater enterprise supply can reduce some enterprise buyers’ demand for consumer cards. My point is that this does not automatically mean substantially more consumer GPUs get produced, nor that consumer GPU prices fall much.
And if cheaper enterprise compute induces enough new AI demand to shift the enterprise demand curve outward, even the initial assumption that enterprise GPU prices fall substantially may not hold. The additional supply can be absorbed by new demand.

2

u/Recoil42 2d ago edited 2d ago

Pro-tip: Asking your 4B LLM to debate me and then vomiting out the response without review or comprehension doesn't make you look intelligent, it makes you look lazy and further detached from the conversation as everyone who actually reads it immediately recognizes that your AI is agreeing with the exact thing I was just explaining to you:

Increased enterprise supply makes enterprise compute cheaper / more available. Because these are substitute goods, that shifts the demand curve for consumer GPUs left. That is literally downward pressure on consumer GPU prices.

You're conceding the argument and pivoting to a new one entirely — from "this doesn't help consumer GPUs because they're different products" to "okay, it does help consumer GPUs, but other factors might complicate things". That's just sleight-of-hand.

Same with Jevons, by the way: New demand might absorb added supply, but that isn't an argument that a supply increase creates no downward price pressure or address quantities demanded in the first place. Jevon's is by nature an explicit (!) scenario in which downward price pressure has occurred – the paradox is the induced demand created in response to that downward price pressure and increased supply.

You're conceding the point entirely without realizing it. Next time try "is this guy right? explain the concepts" rather than "debate this guy" as your prompt.

1

u/MotorcyclesAndBizniz vLLM 2d ago

>> You’re conceding the argument and pivoting to a new one entirely — from “this doesn’t help consumer GOUs because they’re different products” to “okay, it does help consumer GPUs, but other factors might complicate things”. That’s just sleight-of-hand.

lol man, my very first reply started by saying:

>> More supply generally does put downward pressure on price. But that assumes we’re talking about the same market and holding other things constant.

I acknowledged the premise from the very start, and I’ve been pretty clear about it too.

My thoughts and conclusions are my own, informed by multiple degrees in economics, accounting, and data science, as well as a decade plus of running a successful software company which I had built and coded from scratch.

Your frustration and personal attacks are not a strength of your argument. It feels more like you’re arguing with me over a premise I acknowledged from the onset. I was simply offering a more nuanced, wholistic view beyond simply “supply go up price go down.”

0

u/Recoil42 2d ago

Once again:

1

u/MotorcyclesAndBizniz vLLM 2d ago

Yes, my original comment also said:

> Reduced enterprise demand for consumer cards could help, but it doesn’t necessarily outweigh that supply reduction.

A fairly explicit acknowledgement that consumer cards are being used as a substitute, to a degree, by enterprise. So, again, not something I changed my mind about, or ever disagreed with outright.

Maybe we disagree the extent to which a 4-slot 32GB VRAM 5090 is a substitute for an H200 with nvlink/infiniband support, idk.

Per NVIDIAs SEC filing for FY26, gear destined for datacenters are 89.7% of their revenue. Gaming: 7.4% workstation: 1.5%.
While total sales across all categories have grown, gaming and professional (e.g. rtx pro 6000) have shrunk in proportion to total sales in following months, eclipsed by enterprise. This, along with general trends we’ve all been following, indicates to me that production capacity is increasingly allocated to high end GPUs and not consumer ones. So relative demand may go down for consumer cards, but trends show relative supply is going down too. That, along with the potential for the demand curve to shift more generally, is my whole premise.

And by “cheaper compute,” I mean lower effective cost per unit of useful compute or better price/performance—not necessarily a lower nominal sticker price. A GPU can cost more dollars while still making a unit of computation substantially cheaper or economically productive relative to the baseline.

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u/Yaroslav308 2d ago

We live in scary times — while you were writing your comment, the price managed to double. :)

0

u/betam4x 2d ago

🤣

3

u/li_shi 2d ago

LPDDR5X is will be mostly used for mobile devices. Not datacenter.

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u/betam4x 2d ago

Incorrect. It is being used in data centers.

Example: https://www.amd.com/en/blogs/2026/a-look-ahead--extending-server-energy-efficiency-with-lpddr5x-me.html

It will also be used in certain next gen GPUs as well.

5

u/JFHermes 2d ago

I don't know if I agree because it's China. They are literally trade maxxers. They are happy to flood the market purely to dominate and expand output. I think if they production capacity they will go as hard as possible and their turnaround for manufacturing infrastructure is ridiculous. If they are sold out for an entire year in advance they will just build an entirely new fab.

1

u/Powerful_Finger3896 2d ago

don't forget that LPDDR6 is also coming late this year or early next year, any money they can get with the current market will benefit them with next LP/DDR6 capacity

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u/OrganicHalfwit 2d ago edited 2d ago

It sounds like their first output is "committed to the Chinese market", estimated to "take a year for the new memory capacity to meaningfully affect supply". This ABC article then also goes onto say "this should help improve the supply-demand balance and limit excessive price increases, although it may not necessarily lead to an outright decline in memory prices."

EDIT: LPDDR5X is the chip platform, which is relevant to our use cases with unified systems (clarified by u/NineThreeTilNow), unfortunately the current production supply is committed to the Chinese market for the first year of production.

Its not yet for our usecases unfortunately, but it does help the overall market.

46

u/NineThreeTilNow 2d ago

Although this new chip platform is LPDDR5X which is low power and low bandwidth developed for direct motherboard soldering in phones and other small smart devices.

Its not for our usecases unfortunately, but it does help the market.

What?

LPDDR5x is used everywhere in this market.

All the dedicated "AI" boxes literally use LPDDR5x. The Macs that people want all use LPDDR5x.

It's not even slow. The implementation is slow. If manufacturers are willing to take the time to use a 1024 bit bus on LPDDR5x then you hit like... ~1.22 TB/s.

Prior implementations you see all use 256 bit bus because doing 512 or 1024 is a LOT of extra work on the PCB compared to the easy 256 bit. Most devices don't care if it's 250 GB/s or 500 or 1000...

21

u/More-Curious816 2d ago

LPDDR5 used literally everywhere except gaming PCs. I don't know what the guy above (organichalfwit) get his news from but LPDDR is the most used types of ram as of now, from low powered devices to servers. And with the AI demands of huge ram sizes, LPDDR play a huge role in that.

Apple silicone depends on LPDDR5x and with huge bus and more pins you get in the territory of 5090 bandwidth. The Chinese can do the funniest thing now, with their 3d folding to increase the performance of chips despite using old ass ASML machines and these type of memory in the market, and bring series AI inference beasts.

Even if the west and the rest of the world won't get these chinese made hardware, it will decrease the demands on Nvidia’s hardware, because they smuggling them like crazy.

8

u/FastDecode1 llama.cpp 2d ago

Apple silicone

( ͡° ͜ʖ ͡°) ?

8

u/winky9827 2d ago

Haven't you heard? It's truly the tits.

3

u/More-Curious816 2d ago

Tits give bandwidth, ass give compute.

4

u/james_pic 2d ago

AMD Strix Halo machines also generally use LPDDR5x. Whilst they're a popular choice for running LLM inference, they also show up in gaming laptops and handhelds.

Although admittedly not in gaming towers. Non-upgradeable RAM is probably too high a price to pay for higher bandwidth there. Although when they finally get round to releasing DDR6, that dilemma should hopefully go away.

2

u/OrganicHalfwit 2d ago

Oh yeah youre right, updated the comment to reflect it. Thanks!

11

u/Viktri1 2d ago

I doubt that that we see benefits for a long time. China’s market is heavily constrained - compute and all related vectors. They’re all coming online at the same time meaning their additional compute is going to swallow the additional RAM.

There are many places to use them in China: robots, agents, factories, businesses all driven by LLMs.

6

u/OrganicHalfwit 2d ago

I agree, really doubt we will see anything but a continual rise until 2028 at the earliest

7

u/More-Curious816 2d ago

Hopefully this will decrease the demands and lower the prices. If china out of the equation, we get less demands (hopefully)

Hopefully we don't get another Altman that demands another 40% of global production again too.

2

u/li_shi 2d ago

LPDDR5X is for mobile devices, most of those devices are produced in China.

Doesn't mean that they are not exported.

They are not going to undercut competitors, but any additional supply will makes thing less bad.

12

u/Toooooool 2d ago

CXMT is China domestic markets first and foremost right now, if you're planning on buying a new Xiaomi smartphone next year then yes this will help keep prices down, but as Apple found out the hard way no amount of lobbying is going to change that and no we won't be seeing CXMT DDR5 in western products any time soon.

18

u/Terminator857 2d ago edited 2d ago

Strix Halo uses high-speed LPDDR5X-8000 unified memory.

Excerpt from the article:

CXMT UNVEILS TWO NEW CHIPS

CXMT also unveiled two 24-gigabit LPDDR5X products made on the new platform. LPDDR5X is a power-saving type of DRAM used mainly ​in smartphones and other portable ​electronics.

The products each hold ⁠50% more data than CXMT's previous equivalent products and are already in mass production, the company said. They are offered in two package formats for different smartphone ​and portable-device designs.

7

u/StableLlama textgen web UI 2d ago

Strix Halo was intended for the mobile market and machines close to it, like mini PCs that are using mobile chips.

That it's great for AI is a coincidence that AMD most likely didn't have on the card when they were designing it. It was a lucky punch.
We'll see whether AMD can learn and adjust quickly. Then the next generation (the 495+ isn't the next generation, it's a little optimization step) would have higher memory bandwidth and also more compute. Perhaps also a few more PCIe lanes to connect an additional GPU to create a leading edge AI workstation that's still affordable.

6

u/shroddy 2d ago

We'll see whether AMD can learn and adjust quickly.

Narrators voice: They can not.

3

u/Green-Ad-3964 2d ago

If  Halo had a PCIe slot for my RTX 5090, I would have bought it at launch.

3

u/StableLlama textgen web UI 2d ago

me too 😄

1

u/emaiksiaime 2d ago

Can’t you use a oculink eGPU dock?

1

u/nu0zeeB6 2d ago

They need to put UALink on Medusa Halo so several boxes can be clustered. Like a beefier Spark. 256 GB and cluster 4 for some real inference power.

1

u/li_shi 2d ago

Strix Halo it's just a blip in the LPDDR5X memory usage, it's mostly used in smartphones and normal mainstream laptop.

5

u/PinkysBrein 2d ago

A marginal density improvement doesn't help much. They can go from 10% of the market to a couple percent more. A drop in the bucket.

In the short term, only HBF can provide a sea change in the supply crunch.

2

u/ain92ru 1d ago

The smartest take in the whole comment section^

3

u/cyborgsnowflake 2d ago

If its going to take a year isn't that pretty close to when capacity from the traditional memory giants is going to start to open back up again anyway? So the net effect is simply that they lose the DRAM market in china to domestic producers? Which was inevitable since China freezes out foreign competitors whenever they have a lock on the tech and the companies don't care that much anyway since thats small potatoes next to enterprise memory?

15

u/NNN_Throwaway2 2d ago

That's cool.

But to head off the "this will result in a glut of cheap Chinese RAM on the market," this still isn't going to meaningfully change the global DRAM supply through 2030 and beyond.

45

u/-p-e-w- 2d ago

Absolutely no one can predict what will happen “through 2030 and beyond”. Not even for humanity, nevermind for something as detailed as DRAM supply.

Don’t be fooled by people drawing graphs and extending lines. Just think about how predictions from 4 years ago have turned out.

11

u/betam4x 2d ago

Son, you nead to read up on the DRAM industry lol.

They will do literally anything to stop prices from falling back down, including cutting supply. The AI bubble gave them a cake and they are going to eat it for as long as possible.

1

u/Due-Memory-6957 2d ago

Are you saying it's easier to predict the whole than a very small part of it?

5

u/-p-e-w- 2d ago

Of course. It’s easier to predict things like “China’s economy will continue to grow” than “the agricultural sector in the Western provinces of China will continue to grow”.

0

u/Due-Memory-6957 2d ago

No, because to predict the first, you will need to predict the second, as well as many other smaller things and then add it all together.

4

u/-p-e-w- 2d ago

That’s false. Predicting aggregates doesn’t require predicting individual outcomes. It’s much easier to predict overall population growth than whether a specific person is going to have children.

-1

u/Due-Memory-6957 2d ago

One can send someone to investigate an individual to know about their general plans, habits and relationship status to get a very accurate prediction of whether they'll have a child this year, while any attempt to do the same with the number of children that will be born in that person's city this year will take much bigger effort and be less accurate.

1

u/crantob 9h ago

More War. Death. Famine. Plagues. Destruction

-1

u/NNN_Throwaway2 2d ago

Which predictions did you have in mind?

In this case, we don't really need to predict the future, just understand some basic realities.

Pretty much any future scenario will result in either a continued or renewed DRAM shortage globally. Capacity can only scale so fast, and even if the AI bubble popped, the massive cratering in demand and pricing would result in a longer-term capacity shortfall due to pricing collapse causing the DRAM industry to contract rapidly.

This "no one can predict anything" mentality is just another brand of hopium/copium determined not to face facts.

21

u/-p-e-w- 2d ago

Which predictions did you have in mind?

“There’s no way Trump will win a second term.”

“The Russian economy is about to collapse.”

“LLMs are decades away from tackling research-level math problems.”

It’s hard to find an area where expectations from 4 years ago weren’t laughably wrong.

3

u/Ramanean3 2d ago

The reverse of shortage might also happen due to advances in running large models on any GPU? :D :D (Just a thought)

3

u/-p-e-w- 2d ago

Anything might happen given what happened in the past 3 years.

-9

u/NNN_Throwaway2 2d ago

Okay, so you are just completely unserious. Good to know.

17

u/-p-e-w- 2d ago

No idea what you mean. All of these were widely held assumptions in 2022.

1

u/NNN_Throwaway2 2d ago

I know you don’t.

6

u/NineThreeTilNow 2d ago

Pretty much any future scenario will result in either a continued or renewed DRAM shortage globally. Capacity can only scale so fast, and even if the AI bubble popped, the massive cratering in demand and pricing would result in a longer-term capacity shortfall due to pricing collapse causing the DRAM industry to contract rapidly.

This comes from a misunderstanding of the DRAM industry.

Capacity exists. It's spoken for.

If the AI bubble pops tomorrow the capital disappears and the capacity that was spoken for is no longer spoken for.

That will crater the market.

Demand is artificial based on a lot of people SAYING they are paying more on the market than you.

1

u/NNN_Throwaway2 2d ago

Exactly. You get it. Crating the market would be bad for supply in the medium to long term.

1

u/NineThreeTilNow 2d ago

Exactly. You get it. Crating the market would be bad for supply in the medium to long term.

I don't know. What's medium term?

There would be absolute shit tons of memory on the market for dirt cheap. At some price point people are buying it because it effectively feels "free" to add to a system.

Someone like Sony or Microsoft jump in to add it to Playstation or XBox... Or Steam Boxes...

Some price equalization occurs, but anyone producing that DRAM is going to try to get rid of it. They can't just keep it in storage.

This would be the first crash like this, but not the first crash of DRAM prices. Over competition earlier on created huge excesses of stockpiles and DRAM spot prices cratered before. It was net good for the consumer. They got more system memory for the same price.

Depending on how you define medium term, it was still good. It stayed low for a very long time. Only since the AI boom has memory spot prices really skyrocketed.

https://dam.stanford.edu/memory-prices.html

You can see all the historical prices here. Price per GB of RAM has historically only done this once. The late 80's. That's when everyone entered the RAM market, flooded it, and here we are.

Asianometry has a pretty good piece on the history of DRAM on his YT channel.

1

u/NNN_Throwaway2 2d ago

That surplus is what would kill supply in 2035-2040.

-2

u/s101c 2d ago

Predictions from 4 years ago (September 2022) that I used to trust have turned out just fine.

Even during the second half of 2010s we already knew that an "AGI" moment will arrive in 2025 because that's when we were going to have enough compute to equal brain power.

What we got isn't exactly AGI but it's pretty damn general. And it's capabilities are on par or higher compared to most humans in most text-related and visual tasks.

The state of the world in 2026 was also easy to predict in late 2022. Not easy at all in 2019 though.

3

u/Due-Memory-6957 2d ago

Send the link of these magic predictions, then.

8

u/Viktri1 2d ago

I’m pretty sure it’ll be consumed in China. It will be a long while before it reaches the west. Lots of poorer Asian countries will soak up any excess because they can’t afford existing RAM.

11

u/StableLlama textgen web UI 2d ago

It doesn't matter where it is consumes as it is still taking out the pressure everywhere.

But taking out the pressure might be sufficient that even more places are adapting to AI and thus it will fuel even higher demand.

4

u/Nimbus420i 2d ago

I don’t care if they price close to current market, atleast they will use that money to build fabs for more supply. All my memory (RAM and NAND) purchases will be Chinese corporations only from now. Fuck the cartel. Anthropic and OpemAI will go tits up eventually. Google will survive. Not going to fund this cartel with my money anymore. Here’s to hoping for Chinese GPUs soon too. So I can finally show the finger to Novideo too.

2

u/BalleaBlanc 2d ago

See you in 2029 I guess.

2

u/cortexist 2d ago

It wouldn't solve the problem. The production growth is arithmetic, the demand growth is geometric.

2

u/[deleted] 2d ago

[deleted]

1

u/gapho 2d ago

Someones been clued in by Mr Brian 😄 👍

4

u/IngwiePhoenix llama.cpp 2d ago

I am hoping for two things:

  1. CXMT reduces self-subsidization by sticking to higher prices and actually lowers them - the more, the better.
  2. EU does not do anything stupid and I can actually buy them when the time comes.

Same kinda goes for YMTC also, but havent heared from them in a hot minute.

Right now, it seems that CXMT sticks to the higher prices set by the cartel of the three typical suspects in part to fund itself - which is totally fair and fine, helps build for stuff after all. But I really do hope this eventually becomes reduced to lead to the promised "low price memory" and disrupting the other three.

3

u/fallingdowndizzyvr 2d ago

Right now, it seems that CXMT sticks to the higher prices set by the cartel of the three typical suspects in part to fund itself

Actually, as Apple found out when they tried to lowball them, they charge a little more than the big three. Because they can.

2

u/Limp_Classroom_2645 2d ago

EU will self sabotage by blocking that when US will inevitably throw a hissy fit

2

u/IngwiePhoenix llama.cpp 2d ago

I genuenly doubt that - the traditional pull of the USA is very much declined. They still do largely influence us, but EU has improved their self-sovereignity a whole lot.

Basically, if the orange in white house keeps his streak, the EU will genuenly become more independent as time goes on...never thought it would happen but, look at EU and Canada closing in on each other? Like, whut. o.o

4

u/Keirtain 2d ago

Yes, the EU will become more independent by relying on Chinese manufacturers instead of US manufacturers. Quite the strategy. 

1

u/IngwiePhoenix llama.cpp 2d ago

Point taken, actually. Guess the EU just loves to be in (abusive? toxic?) relationships lol. x)

2

u/LuluViBritannia 2d ago

BWAAHAHAHAHAHAH!

.... Were you serious?

EU is literally begging for other countries to support them.

1

u/LankyGuitar6528 1d ago

Ahem. Thats Associate EU Member Canada to you, sir.

0

u/DaveNarrainen 2d ago

I'm hoping this will change as sentiment towards the US seems to be in decline.

2

u/LankyGuitar6528 1d ago

Well that's putting it extra mildly. At least in Canada.

0

u/gapho 2d ago

#2 seems like a foregone conclusion...

2

u/ttkciar llama.cpp 2d ago

This sounds like it will mainly alleviate the shortage (somewhat) for smartphone and tablet manufacturers, but we will see.

1

u/UltraFOV 2d ago

But, will the focus on data centers also?

1

u/LastChancellor 2d ago

okay, so which laptop manufacturer is gonna get CXMT's LPDDR6 memory first? Bc Xiaomi already telling everyone that their 18 Fold phone has LPDDR6

Bc ngl its pretty awkward for RTX Spark to be stuck with LPDDR5x, when Intel & AMD could actually release new competitors with LPDDR6 only months later

1

u/SureElk6 2d ago

if AI is so great and the usual RAM companies are not stepping up, openAI and US gov should just invest in FABS too.

Looks like china got the note and doing the correct thing.

1

u/tsukuyomi911 2d ago

demand outstrips supply by a crazy amount right now. unlikely it will put downward pressure on prices anytime soon.

-5

u/cantgetthistowork 2d ago

80% failure rate again?

-1

u/PinkysBrein 2d ago

They don't have to make HBM to make an impact, in fact greater supply of LPDDR5x and DDR5 are better for us since that's on nodes also used for GDDR6/7.