AI chip manufacturers are among the biggest companies in the world right now. However, the chip manufacturers are heavily dependent on memory chip manufacturers which is a very small and exclusive club. Until now, there were just three big names in the AI memory chip industry, which are Micron, SK Hynix, and Samsung Electronics. Together, they are called the “big three” of the sector. However, their dominance may be questioned by competition China’s ChangXin Memory Technologies (CXMT), which may put a dent in Micron, SK Hynix, and Samsung’s market share.
Can Micron, SK Hynix, And Samsung Survive New Competition From China?
Share prices of ChangXin Memory Technologies (CXMT) surged by more than 470% upon its debut. The company’s valuation hit 3.3 trillion yuan ($487.3 billion), making CXMT the most valuable company in mainland China. While ChangXin Memory Technologies is still smaller than Micron, SK Hynix, or Samsung, the ongoing memory chip shortage could help ChangXin close the gap really soon.
In its recent earnings report, Micron (MU) stated that the company is sold out for the next few years. With AI demand rising, chip manufacturers could turn to ChangXin to provide the necessary memory chips to maintain supply.
While ChangXin Memory Technologies (CXMT) may make a big splash in the memory chip market, it is unlikely to destroy the “big three.” In fact, we may soon see the emergence of a “big four” in the AI memory chip sector.
Also Read: Here’s Why Micron Is The Winner In The Nvidia Vs AMD Battle
Micron (MU) has had quite a successful ride over the last year. The company recently announced a $250 billion investment plan in the US to ramp up domestic production. Moreover, Micron being the only US-based company among the top names in the sector puts it in a favorable position. Even Wall Street is extremely bullish on Micron’s future, with several analysts increasing their stock price target to new heights.