Samsung Electronics and SK hynix are prioritizing high-margin High-Bandwidth Memory (HBM) for AI applications. This strategic shift created a supply vacuum in the legacy DRAM and NAND markets.
Chinese chipmakers doubled their commodity memory market share in the first quarter of 2026. Yangtze Memory Technologies Corp (YMTC) increased its NAND flash market share to 13%. ChangXin Memory Technologies (CXMT) captured 8% of the DRAM market by revenue.
Major global suppliers converted legacy production lines to HBM to meet surging AI demand. Chinese firms utilized government subsidies and competitive pricing to fill the resulting market gap.