Shares of US-based Micron Technology fell 4%, while SK Hynix shares dropped 5% as memory-chip stocks faced a global sell-off. The selling pressure increased after South Korea’s benchmark KOSPI index plunged. Micron and SK Hynix stocks fell in early trading on Tuesday.
CXMT plans to launch a new server memory product by the end of 2026. Samsung, SK Hynix and US-based Micron together account for roughly 90% of the global dynamic random-access memory (DRAM) market. Chinese memory-chip maker ChangXin Memory Technologies (CXMT) announced progress on a new memory-cell design.
The technology is engineered to pack more storage into less physical space, raising concerns about increased competition for established memory-chip companies, according to Yahoo Finance. CXMT’s progress could intensify competition in a market currently dominated by these three companies, according to Yahoo Finance. The development has contributed to the ongoing sell-off in memory-chip stocks, according to Yahoo Finance.
China’s CXMT is at the centre of the latest memory-chip sell-off. The product will use the company’s new memory-cell architecture. Its planned introduction could increase competitive pressure on Samsung, SK Hynix and Micron in the global memory-chip market. The new technology threatens the position of the world’s biggest memory-chip makers. Investors are worried about stronger competition in the memory-chip industry. CXMT’s announcement comes as investors assess the potential impact of a new competitor on established manufacturers.
