China's CXMT Tests Bonded DRAM to Bypass US Export Controls and Rival Korean Peers

Key Facts

In a strategic move to accelerate China's semiconductor self-sufficiency, CXMT has commenced testing a pilot production line for bonded DRAM technology in Hefei to bypass restrictions on EUV lithography equipment. According to reports, Chinese memory chipmakers have significantly narrowed the technological gap with industry leaders Samsung and SK Hynix from five years to approximately three years. This initiative focuses on utilizing 'bonded' techniques to achieve high-performance memory production using DUV tools, effectively circumventing US-led export controls on advanced ASML machinery.

This development emerges as competition intensifies in the global chip sector, with Micron Technology (MU) recently reporting quarterly revenue of $6.81 billion, beating estimates driven by AI demand per its latest earnings release. Conversely, ASML faces mounting pressure as export licenses to China become increasingly restricted. Per market data, CXMT’s progress in domestic alternatives threatens the long-term technological moat held by Korean and American firms that currently dominate the global DRAM market share.

Regarding market performance, ASML stood at $1769.32 while MU closed at $975.56 (close July 02, 2026). Investors are closely monitoring CXMT's pilot phase, as a transition to full-scale commercial production could disrupt global supply chain dynamics. Looking ahead, the broader manufacturing sentiment in China remains a key catalyst, especially following the recent Manufacturing PMI reading of 50.3, which highlights the current state of industrial expansion in the region.