Micron and SK Hynix stocks fall as CXMT announces chip design progress

Shares of major memory chip manufacturers declined on Monday following announcements from Chinese rival ChangXin Memory Technologies (CXMT). Micron Technology (MU) stock fell 3.14%, while SK Hynix (SKHY) dropped 3.78%. Samsung Electronics (005930.KS) also saw its shares tumble 4% alongside the broader South Korean stock market.

CXMT Announces Progress on 4F Square Architecture

The market movement followed news that CXMT has reported "key progress" on a new memory-cell design known as the "4F square" architecture. This design aims to increase storage density by fitting more cells onto a single chip. Currently, mainstream commercial dynamic random-access memory (DRAM) uses a 6F square-cell structure.

According to a company statement, CXMT president Cao Kanyu said at an industrial event in Shanghai over the weekend that the company plans to roll out a new server-memory product based on this structure by the end of 2026. The new product is expected to be a DDR5 RDIMM designed for enterprise-grade servers.

Technical Details and Competitor Timelines

CXMT stated that the core of its 4F square design is its proprietary Vertical Surrounding Gate (VSG) transistor. This vertical gate architecture is intended to address current leakage while reducing unit area and increasing storage density. The shift from the mainstream 6F square structure to 4F square represents a transition from horizontal to vertical transistor channels. Because existing manufacturing flows could not be adapted to the new structure, CXMT said it had to redesign key processes to optimize the performance-to-power ratio.

The world’s leading DRAM producers are also pursuing this technology. SK Hynix unveiled its 4F square road map in 2025. Additionally, a report by South Korean media outlet The Elec in April stated that Samsung planned to mass-produce sub-10-nanometre DRAM based on the new design by 2028.

Market Context and Analyst Views

CXMT, founded in 2016 and based in Hefei, said it has been researching the 4F square architecture since its inception and has published more than 300 related patent families. The company listed on the Shanghai Stock Exchange’s Star Market in July. Last month, CXMT announced that its fifth-generation DRAM manufacturing platform, known as G5, had entered mass production.

In the U.S. market, Micron stock is down roughly 16% from its all-time high in June. Despite the recent decline, analyst Gil Luria of D.A. Davidson lifted his price target for Micron to $3,000 last week, citing long-term growth opportunities tied to artificial intelligence. This revised target is an increase from the firm's previous $2,100 estimate.

Why it matters

The advancement of the 4F square architecture by CXMT highlights intensifying competition in the memory chip sector. While established players like Samsung and SK Hynix have their own road maps for this technology, CXMT’s plan to introduce a server product by the end of 2026 places it in direct competition with global leaders. The move underscores the strategic importance of high-density memory solutions in the ongoing AI boom.

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Sources

• finance.yahoo.com: Micron, SK Hynix stocks fall as Chinese memory maker announces progress in new design
• scmp.com: China’s CXMT unveils ‘key progress’ on chip structure pursued by Samsung, SK Hynix | South China Morning Post

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.