ChangXin Memory Technologies (CXMT), China's leading DRAM manufacturer, is preparing to enter the NAND flash-memory market, according to a Reuters exclusive. The move positions the Hefei-based company in direct competition with Samsung Electronics and domestic rival Yangtze Memory Technologies (YMTC).

The decision comes amid a global shortage of memory chips that has driven prices sharply higher across the industry. CXMT has built its business almost entirely on DRAM production, supplying chips for PCs, servers, and mobile devices. An entry into NAND flash would mark the company's first major product-line expansion and significantly broaden its addressable market.

The competitive landscape CXMT intends to enter is demanding. Samsung holds the top position in the global NAND market, while YMTC — China's primary NAND producer — has faced export restrictions from the United States that limited its access to advanced manufacturing equipment. A CXMT push into flash would add a second major Chinese competitor to the segment and intensify pressure on incumbent suppliers already adjusting their output and pricing strategies in response to the shortage.

Details of the plan — including the timeline for volume production, the target process technology, and the intended capacity — remain undisclosed in the report. NAND flash manufacturing requires distinct process expertise from DRAM, and CXMT's ability to ramp competitive 3D NAND output will determine how quickly the company can capture share.

For memory buyers, a new entrant with scale ambitions could eventually ease supply constraints that have squeezed device makers and data-center operators. Any material impact, however, depends on CXMT reaching production maturity, a process that has historically taken established players years to complete.

The company's expansion also carries broader implications for China's semiconductor self-sufficiency drive. Beijing has prioritized domestic memory production to reduce reliance on foreign suppliers, and CXMT has been a central beneficiary of that policy push. Adding NAND to its portfolio would extend Chinese capability across both major memory categories — DRAM and flash.

Reuters reports that CXMT aims to challenge Samsung and YMTC directly. Samsung, as the world's largest memory maker, sells both DRAM and NAND and would face a further challenger in a market where Chinese suppliers are steadily increasing their presence. YMTC, meanwhile, would lose its status as China's sole large-scale NAND manufacturer.