Introduction:
In recent years, the dynamics of the memory market especially NAND have undergone a profound transformation, with South Korea dominant players, Samsung and SK Hynix, facing intense competition from manufacturers from China
The rapidly narrowing technology gap and increased competitive pressure signal a significant shift in the balance of power within the semiconductor industry.
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The Rise of China’s Memory Industry:
According to reports from South Korean media outlet Business Korea, China has significantly increased its support for the memory industry.
Business Korea, a South Korean media outlet, reported that market sources disclosed increased Chinese support for the memory industry. The technology gap with the world’s leading NAND Flash companies has now been reduced to 2 years.
In response to US restrictions on selling NAND flash memory with 128 layers or more to China, Yangtze Memory Technologies, a leading Chinese semiconductor company, has introduced its 120-layer NAND flash memory. This strategic move not only showcases innovation within the semiconductor market but also serves as a proactive solution to navigate challenges arising from geopolitical issues.
TechInsights recently made an unexpected technological leap by uncovering a groundbreaking 232-layer Quad-Level Cell (QLC) 3D NAND memory chip within a consumer device, marking World’s most advanced memory achievement from China
With substantial investments from the Chinese government and state-owned funds, the country is making strides in closing the technology gap with leading NAND Flash companies globally.
Read More: How China Circumvented US Restrictions to Unveil 120 Layer NAND Flash
NAND Flash Technology: Closing the Gap between China and Korea
At the 2022 Flash Memory Summit (FMS), China’s YMTC unveiled its groundbreaking fourth-generation 3D TLC flash memory chip, the X3-9070. Boasting an impressive 232-layer count, it surpassed any other company’s layer count at the time. The X3-9070 introduces several advantages over prior generations of NAND flash memory. This includies increased capacity, reduced power consumption, and enhanced performance.
The development of the X3-9070 is also a sign of China’s growing ambitions in the semiconductor industry. China is the world’s largest consumer of semiconductors, but it relies heavily on imports to meet its needs.
However, YMTC’s path to success has not been smooth. In December 2022, the US government placed YMTC on its Entity List, which restricts the company’s ability to purchase US technology. This could make it more difficult for YMTC to develop future generations of memory chips i.e smaller tech nodes.
Based on the Xtacking 3.0 architecture, this development puts China ahead of its South Korean counterparts. This includes companies like Samsung and SK Hynix, in the mass production of high-level NAND Flash memory.
The accelerated catch-up speed in NAND Flash technology is attributed to its relatively low threshold, facilitating quicker advancements and a more significant narrowing of the technology gap.
| Feature | YMTC | Samsung Electronics | SK Hynix | Micron Technology |
|---|---|---|---|---|
| Node size | 128nm | 14nm | 12nm | 17nm |
| Layer count | 232 | 136 | 176 | 128 |
| Capacity | 1Tb | 512Gb | 1Tb | 1Tb |
| Performance | 2400MT/s | 2400MT/s | 2100MT/s | 2100MT/s |
| Power consumption | 0.5W/GB | 0.4W/GB | 0.4W/GB | 0.4W/GB |
NAND Global Market Share of China and Korea
As you can see, YMTC’s X3-9070 is a very competitive product. It is one of the highest-capacity and highest-performance NAND flash memory chips on the market.
If YMTC continues to innovate and overcome the challenges it faces, it could become a major player in the global memory chip market.
Read more: China Makes World’s Most Advanced 3D NAND memory chip Despite US Sanctions
DRAM Technology: Progressing, but Lagging Behind
Although the technology gap in NAND Flash is closing rapidly, the situation with Dynamic Random-Access Memory (DRAM) differs. DRAM still maintains a technology gap of approximately five years.
The complexities and higher thresholds associated with DRAM technology contribute to this slower progress, highlighting an area where South Korean manufacturers still maintain an edge.
Investment and Support for China NAND Against Korea:
China’s commitment to narrowing the technology gap is evident in its substantial financial investments. In 2022 alone, the Chinese government and state-owned investment funds are set to contribute approximately 50 billion yuan to support the development of the memory industry.
This continuous influx of capital serves two purposes: catching up with global technology standards and penetrating the market more rapidly.
Conclusion:
Chinese memory manufacturers challenge South Korean giants through substantial investments, technological advancements, and a focus on closing the technology gap. The evolving semiconductor landscape raises uncertainty about how this intensified competition will impact the future of the memory market.
