China’s Tsinghua Unigroup will begin building its DRAM factory at Chongqing within the year, Japanese media Nikkei reports.
The factory go live in 2022 with a monthly production rate of 100,000 wafers. Construction was initially planned to begin last year but the US-China trade war and COVID-19 pandemic has delayed the project.
When the new factory goes live, Tsinghua Unigroup will become the second DRAM producer in China after CXMT.
Meanwhile, CXMT was currently expanding its factory output to 20,000 wafers per month to 40,000 wafers.
The two companies combined will have a DRAM production rate of 140,000 wafers per month in 2022. This falls behind Samsung’s over 400,000 wafers per month, but is enough not to be brushed aside lightly.
China is increasing the use of its homemade DRAM. China-made DRAM are being used for embedded devices as those for low-end or repaired products there. Their line-up has also been diversified to include DDR4, not just DDR3. Taiwanese DRAM module maker ADATA has launched DDR4 DRAM module using CXMT’s goods.
It remains to be seen, however, on whether Tsinghua Unigroup’s plan will proceed without a hitch as it will have problems securing US-made equipment needed for DRAM production. The sanctions has caused Fujian Jinhua Integrated Circuit (JHICC) to stop its dealings with Applied Materials back in April.
The Chinese government is planning to self-supply 70% of its tech components by 2025, under its Made in China 2025 plan. It plans to meet the technological competence of developed countries by 2035. The government is providing subsidies to local companies to meet the goal.