Assembling AI servers requires not only expensive processors but also colossal volumes of fast memory. We recently saw how the capitalization of Korea's SK hynix smashed the $1 trillion ceiling on the same yeast. For China, CXMT's success is a matter of strategic survival. Under conditions where supplies of American equipment are blocked, Beijing is urgently scaling its own capacities. The deficit in the global memory market plays into the hands of the Chinese: local giants (like Alibaba and Tencent) are buying up all available volumes domestically. The hardware bottleneck of the AI industry creates perfect greenhouse conditions for sovereign chipmakers.
Source: CXMT / Reuters
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