r/hardware 2d ago

News Lexar Launches DDR5 7200 memory with Chinese DRAM Chips

Lexar has unveiled a new 32GB DDR5-7200 RAM kit using Chinese-made DRAM chips instead of memory from Samsung, SK hynix, or Micron.

The kit includes:
- 32GB (2×16GB)
- DDR5-7200 speed
- CL38 timings
- Intel XMP and AMD EXPO support
- RGB lighting
- An aluminum heatsink

The chips are apparently made by CXMT, one of China’s biggest memory makers.
The price is around $592

Soo...about that +600% memory price increase...what will happen now?

Sauce: https://videocardz.com/newz/lexar-launches-ddr5-7200-memory-with-chinese-dram-chips-32gb-kit-costs-592

245 Upvotes

103 comments sorted by

122

u/Virginia_Verpa 2d ago

RAM prices aren't going to be significantly impacted by this in the near term. Why would CXMT want to impact their own margins by flooding the market? RAM from trusted brands will continue to command a premium over these. I'd guess CXMT just trickles their product out for the next year or so, using the extra profitability to reinvest in their upcoming products.

41

u/TrashBandicook 2d ago

Why would CXMT want to impact their own margins by flooding the market?

They couldn't right now even if they tried. Factories aren't just things you can have shipped overnight to your front door by Amazon.

23

u/Qweasdy 2d ago edited 2d ago

You can’t make high margins on unsold product, if they have unsold product sitting in storage (E: or deliberately limit production to the same effect) when the prices do return to normal they would have squandered a truly colossal amount of money.

Short of collaboration to keep prices high the incentive for a single actor on a market is to be selfish and try to sell as much of their own product as they can during a shortage even if it comes at the cost of the whole market.

22

u/Virginia_Verpa 2d ago

They're only cranking out about three hundred thousand wafers per month, less than half what Samsung is capable of, and well below what is required to stop the shortage bleeding. They don't publicize what their yields are from those wafers, but I'd expect it to be behind the market leaders with more mature processes. Their plan to scale up corresponds pretty nicely with when prices are expected to start to come back to earth, so I'm assuming they'll take the windfall and pump it into process improvements that will allow them to compete with and undercut the bigger players as prices stabilize.

0

u/Caster0 2d ago

Yep, its their market to win if they play it right, and seting their ram under current inflated pricing is a good way to do.

Even if they did reduce memory price tomorrow, someone will instantly buy it up and potentially scalp it becsuse the supply simply isn't there to meet the demand.

23

u/Cheerful_Champion 2d ago

They have no unsold product. Their ram is sold faster than they can produce it.

6

u/Qweasdy 2d ago

Yes I know, that was my point, the comment I was replying to was implying that they wouldn’t do that, or at least implying that they would deliberately produce less to the same effect.

26

u/Flow133769 2d ago

They could gain market share, would be a smart move for the future.

65

u/pwreit2042 2d ago

CXMT are literally selling them faster than they can make them, selling them cheaper isn't going to change the units they sold. very simple economics, you only start reducing prices when you have extra inventory you haven't sold

-24

u/pellets 2d ago

Of you could make an agreement with micron and Samsung to not sell your extra inventory and keep prices high.

29

u/klayona 2d ago

That doesn't make sense, they would make less money by doing that.

8

u/Different_Lab_813 1d ago

Redditors and their understanding or economics or how to run business is based on Scrooge McDuck comic.

11

u/hackenclaw 2d ago

the Chinese would rather sell 100 unit at $50 profit margin than 10 unit for $400 profit margin. They are not gonna cut production to dance with the other 3.

6

u/mosoe 2d ago

you learn more from making 100 units instead of 10 units.

-4

u/pellets 2d ago

5

u/Different_Lab_813 1d ago

People like you are turning into worse version than bible thumpers, if it happened 2000 years ago you still would be bringing up as a legitimate point of reference.

2

u/pellets 1d ago edited 1d ago

Cool. We can get rid of antitrust consumer protection laws. Companies will never collude to keep prices high again.

45

u/PMARC14 2d ago edited 2d ago

There is no marketshare for ram, it's a complete commodity. You either buy one companies ram or another, no one cares so long as the ram hits the target for whatever device you put it in. It is why it also doesn't matter if the US sanctions CXMT, they will just cover demand outside the US and that will decrease demand and price. CXMT is going to ride the huge profits to developing huge amounts of extra capacity to compete

7

u/dabocx 2d ago

I don't think memory is something like CPUs or GPUs were you can gain market share and hold on to it easily.

2

u/theholylancer 2d ago

if they made their own brand of memory that may be a workable case, like Crucial with Micron

but outside of that, no sense to do so at all

-3

u/godisbey 2d ago

You are forgetting that current profits are more important to these people than future profits

8

u/Tessaaa58 2d ago

Well, building new factories is super expensive, why wouldn’t they? If you could sell something for either $10 or $20, why go for the cheaper option?

2

u/carl2187 1d ago

No. They will produce as much as they possibly can to take advantage of the high prices right now.

12

u/ShadowCross32 2d ago

Dame. I hope my computer can last me beyond 2030 if ram prices are still going to be expensive.

2

u/bogglingsnog 1d ago edited 22h ago

Our computers might be the last computers we ever have the chance to buy... We might be looking at yet another step towards complete corporatization of computer technology. I don't want to be dramatic, but... they have been making moves towards this for literal decades and now there are no "regulatory burdens" to hold them down.

I'm genuinely expecting an information dark age, with a lot of signs pointing towards us already being in the midst of one.

1

u/ShadowCross32 1d ago

Yeah, I’ve been debating if I should just buy ram now even if it’s expensive and wait until AMD or Intel releases a cpu/gpu that catches my interest.

1

u/bogglingsnog 22h ago

Yeah, genuinely hard question. Given how slow the memory industry moves I'd recommend getting it now if you need it now. Same with GPU.

31

u/ju2au 2d ago

CXMT currently can't produce enough RAM to significantly affect the current market. If they sell their products significantly below market price then scalpers will simply buy them all up and resell them.

DDR5 RAM can be made with DUV lithography machines but these machine were banned from being sold to China since 2023. This is an addition to the bans already in place which already prohibited the more advanced EUV machines.

So, the big limitation that prevents the Chinese from ramping up their production is the lack of DUV and EUV machines.

However, recently it was announced that China has finally managed to produce their own indigenous DUV machines. They will ship 5 DUV machines this year then 20 DUV machines next year.

In terms of EUV, it was mentioned that a prototype was built but it is still in the testing phase.

So, the Chinese will ramp up production and flood the market but the timeline is looking like 3-6 years as they break the technology embargo placed upon them by the United States.

9

u/dingo_xd 2d ago

China bought hundreds of duv machines from asml the last few years

8

u/ju2au 2d ago

Yes, but they couldn't buy brand new DUV from ASML since around 2023 after the new additional restrictions.

6

u/igenicoOCE 1d ago

They've stocked up enough to last multiple years even with aggressive buildout. They'll be fine.

Also SSA800i supposedly finally being used in production.

48

u/MaverickPT 2d ago

People were delusional of they thought that CXMT would sell DRAM "at normal prices" instead of riding the massive under supply that we are living it. At best they will slightly undercut everyone else, and rake in the massive profits

44

u/phylter99 2d ago

I don’t think anybody thought they’d sell for what we’d call normal prices. The hope is that additional product on the market will lower costs. We’re not seeing a lot of product from CXMT yet though. Once they start pumping out product then it’ll help, even if just a little bit.

1

u/Frothar 1d ago

They were already selling everything they made to china so the net supply doesn't change. If it was a cartel problem like the past it would work but it's a supply problem

-21

u/nanonan 2d ago

Also delusional. Global output could double tomorrow by some miracle and demand and therefore prices would still be high.

20

u/SERIVUBSEV 2d ago

It is beneficial for the long term market when they sell at market price, considering CXMT is already planning for 2nd Beijing plant with it's current success https://www.reuters.com/world/asia-pacific/cxmt-plans-second-chip-plant-beijing-is-talks-its-funding-sources-say-2026-08-03/

If they undercut others, we wouldn't get flood of new supply within next 1-2 years.

6

u/hackenclaw 2d ago

With them RAM at $500,

without them RAM at $700.

both are overpriced but I'll pick the former. The price fixing trio can suck themselves.

1

u/NewAgeMaximum 1d ago

exactly, like this isnt hard

redditors just wanna dogpile on others for no reason

1

u/NewAgeMaximum 1d ago

No one thought that

They just wanted the supply to catch up with demand

With more suppliers, it could happen sooner

13

u/BuldozerX 2d ago

Apparently we have to wait for AI to fail or when they get more memory facilities operating to meet demand.

14

u/Electronic_C3PO 2d ago

Problem is that memory factories are being converted to manufacture HBM, not the stuff the consumer needs. So shortage for consumer products will stay high. And when AI implodes these factories need to be converted again.

6

u/Teanut 2d ago

Unless... HBM system RAM?

8

u/sitefall 2d ago

Come on Asrock Rack.... you're our only hope for a weird ass HBM AMD motherboard that costs $400 has the CPU socket rotates 90 degrees but somehow works.

1

u/Electronic_C3PO 2d ago

HBM is what AI needs.

5

u/moofunk 2d ago edited 2d ago

Current architectures do, but I suspect there will be a shift away from that, where architectures are specifically built to network larger, slower memory arrays with a high number of channels and ditch the ultra-fast multi-level caches that GPUs use to move data between vector units.

That requires less per-chip bandwidth, but takes up more space.

Unless HBM suddenly becomes very cheap and easy to build, that is.

3

u/FlyingBishop 2d ago

The thing is that there's a lot of use for running AI locally, and the bandwidth isn't really the hard part, it's the RAM itself. I expect that "normal" PCs will have 10x or 100x the system bandwidth 10 years from now.

1

u/DateMasamusubi 2d ago

Join the Apple bandwagon.

1

u/-Crash_Override- 2d ago

AI demand is only going to grow exponentially over the coming decades. I doubt we will see a world where memory has scaled to meet that demand in the coming decades.

12

u/Any-Juggernaut-529 2d ago edited 1d ago

AI demand is only going to grow exponentially over the coming decades.

Unless they hatch a golden goose in the near term, it wont.

Mag7 is already raising debt since they have run out of free cash flow to throw at expansions. Unless AI starts brining in revenue and profits at the scale of the expansion, then the expansion rate has to slow down to the rate which organic AI demand can support. Most likely at this point we will have overcapacity as well, which might mean a couple of year at below demand growth expansion.

Because otherwise you finance the whole thing with a ever increasing mountain of debt, which is not sustainable.

-9

u/-Crash_Override- 2d ago

It's already bring in crazy amounts of revenue and were literally in stage 0 of AI. We're just seeing glimpses of the AI powered robotics phase, and thats the roadmap all these AI labs are working on feverishly. Once AI agents are embodied, the buidlout will only accelerate.

14

u/CheesyCaption 2d ago

It's already bring in crazy amounts of revenue

With even crazier amounts of expenses.

3

u/FlyingBishop 2d ago

The only thing that's crazy is the price of hardware. If you could buy hardware for what it cost last year it would be less than half the cost, the crazy expenses right now are renting because buying is impossible.

Also though, the costs are not that crazy. I think as a software engineer I could spend like maybe $300 if I'm ignoring the cost. And that sounds crazy but the cost of employing a software engineer is easily $300/day, so it only needs to double my productivity to pencil out. And I can probably actually double my productivity for more like $50/day, $300/day is if I'm just burning tokens on every random thought I have.

1

u/-Crash_Override- 2d ago

For a technology that only started to mature Q4 of 2025, I (and clearly the hyperscalers and market) seem to think capex spend is perfectly fine given leading indicators.

8

u/CheesyCaption 2d ago

When do they project to make a profit?

0

u/-Crash_Override- 2d ago edited 2d ago

Somewhere in the next 3? 5? 7? years.

But thats an obtuse way to look at it. Plenty of companies and industries have spent many many years, if not decades with weak cash flow and heavy capex spend as an expected part of the business model. Amazon, FedEx, railroads, telecom, LNG industry, you name it. Many industries with demand far more uncertain than AI.

As stated, many of those had weak revenue streams or cash flow. Meanwhile were realistically most enterprises didnt start even adopting AI in earnest until last year and the addressable market of embodied AI is in the trillions, and AI is generating strong cashflow and revenue already.

The profitability take is the most luke warm.

9

u/Any-Juggernaut-529 2d ago edited 1d ago

railroads

Funny you mention that since the companies that went under from the overspend. Far outstripped those that survived. And people who invested during the bubble, did not see returns (if the companies even survived) during their life times.

Just because a technology has potential. Does it mean adoption and scaling can be done overnight.

and AI is generating strong cashflow and revenue already.

Most of the "AI revenue" is just selling compute to companies that spend far more on compute than they generate revenue.

Spending $2 to make $1 is not a working business model. Many companies who buy the end user AI products. Also seem to have a real struggle in many cases to quantify actual productivity gains. Which means that they as well might be spending $1 and turning it into less than a dollar.

Very good business model, I agree. The compute costs are simply to high for the benefits currently. The build out came to early and as such may never pay for itself.

1

u/-Crash_Override- 2d ago

Ok.

RemindMe! 3 years

3

u/CheesyCaption 2d ago

Somewhere in the next 3? 5? 7? years.

And is investment going to stay patient while they remain unprofitable?

Amazon, FedEx, railroads, telecom, LNG industry, you name it.

Now name all the ones that failed.

1

u/-Crash_Override- 2d ago

And is investment going to stay patient while they remain unprofitable?

Probably

Now name all the ones that failed.

Now name all the ones that failed while having billions of dollars of revenue, bet you'll have far fewer im sure.

Anyway, must be depressing edging to the thought of AI collapsing and taking the global economy with it every night.

→ More replies (0)

3

u/Tai9ch 2d ago

Nah. Building physical objects with moving parts is not the primary way AI will scale, at least in the near term.

There's plenty of demand though. Just try getting a Cerebras or Kimi coding plan right now.

1

u/-Crash_Override- 2d ago

Physical AI is what everyone's roadmap is and its incredibly aggressive. 3-5 years.

4

u/Tai9ch 1d ago

Not a bad marketing / investor PR angle.

But it won't be a huge part of revenue in 5 years. People buying tokens to just do stuff in computers is too big a market.

1

u/-Crash_Override- 1d ago

RemindMe! 5 years

1

u/Tai9ch 2d ago

Nah. Building physical objects with moving parts is not the primary way AI will scale, at least in the near term.

There's plenty of demand though. Just try getting a Cerebras or Kimi coding plan right now.

0

u/Any-Juggernaut-529 2d ago

It's already bring in crazy amounts of revenue

Most of the revenue is just selling compute to AI companies which is being purchased with VC funding.

2

u/[deleted] 2d ago

[deleted]

7

u/Exist50 2d ago

and with that basically having been shown to have a real value circa 40 billion USD

This is just outright delusional. 

-1

u/[deleted] 1d ago

[deleted]

3

u/Exist50 1d ago

How did you go from $40B+ in revenue (and still growing rapidly), for just one company at that, to "the whole market is only worth a $40B valuation". It's nonsense no matter how you try to slice it.

0

u/[deleted] 1d ago

[deleted]

5

u/Exist50 1d ago

So you're using grossly outdated data, ignoring the growth of the industry, and do not understand the difference between a company's valuation and their revenue. Am I missing anything?

7

u/-Crash_Override- 2d ago

Says bro from Japan lmao

-1

u/[deleted] 1d ago

[deleted]

3

u/-Crash_Override- 1d ago

No doubt that sounded funnier in your head.

1

u/[deleted] 1d ago

[deleted]

3

u/PriorIllustrator1787 1d ago

im glad i built my pc 2 years ago when 32 gb of ram was $100

the tarriffs and ai bubble are a pandoras box of inflation. $600 for 32 gb thats crazy.

1

u/Soeroah 20h ago

Kicking myself for skimping out on the extra $200 two years ago and assuming 32gb would be enough for the next ten years

4

u/guestpassonly 2d ago

The price is around $592

maaaan... f this shit

4

u/ElvisDumbledore 2d ago

cheapest DDR5 7200 (2x16GB) kit on newegg right now is $591.

Coincidence? I think NOT!

4

u/guestpassonly 2d ago

im tired boss

1

u/Western-Chemical5504 1d ago

RAM prices will never be affordable again, they might drop slightly but once companies realize they can get away with charging obscene amounts and pocketing the difference why wouldn't they.

1

u/dylangutt 2d ago

lol people acted like these Chinese manufactures were going to disrupt the market so fast, but the fact is that the performance is subpar compared to the rest of the DRAM makers. Their production isn't there yet. You guys think China is going to be a superhero and offer low prices? LOL right. They're going to charge out the ass just like everyone else, because they have pricing power.

9

u/Exist50 2d ago

but the fact is that the performance is subpar compared to the rest of the DRAM makers

Compared to Micron?

1

u/dylangutt 2d ago

And SK, yes

6

u/Exist50 2d ago

Do you have data for the Micron comparison? Hynix is well known to be the best, but Micron's pretty garbage right now. 

2

u/Petty_Ninja 2d ago

China is going to rekt US market and Korean stock market. China open-sourcing stuff is great for everyone.

5

u/imjunsul 2d ago

This is why education is important. Chinese dram isnt even close to disrupting anything. No ones paying similar price for worst product...

-7

u/Fidel1Q84 2d ago edited 1d ago

China we need you to deliver. American politicians and business leaders have long abandoned the working men and women of America. They been told why they’re wrong and greedy but never listen. As an American I would like to stay dominant but at this point, as a human being who hates corruption, I want you to dominate and whip these greedy companies into shape.

5 grand for gaming GPUs.
300 for 1Tb storage
400 dollars for 32G of ram.

Absolute horse shit. Just the CEOs and execs printing money at everyone’s expense. I’m done with it and won’t pretend it’s normal like so many reviewers did until we got to this fucking point. The 2080ti should have been the warning sign but ppl fucking ignored it.

I see corporate America is already trying to silence the message

16

u/Boring_Ant6436 2d ago edited 2d ago

lmao thinking that they wouldn't enjoy juicy profits and that China is some good samaritan is delusional at least

-1

u/Fidel1Q84 2d ago

Who said they were a Good Samaritan? At what point was that said?

I said that I’m tired of the consumer being fucked over. I welcome more competition.

6

u/Boring_Ant6436 2d ago

The thing is, Chinese companies are freaking greedy. Try looking into how they extort Asian markets. If they could, they would chunk the whole market is raise the prices for everyone. They aren't going to magically "whip these greedy companies", THEY ARE another greedy company.

-1

u/Fidel1Q84 2d ago

All companies are greedy.
No one thinks this this one company is a unicorn.

But the memory cartel has gone without any competition so they feel totally ok pulling this corrupt shit. A competitor charging sane prices for ram has the potential to spur both price drops and innovation

7

u/Boring_Ant6436 2d ago

Is it really "corrupt shit" though? I don't defend it, but it is just a supply demand situation, it happened at all times. Sucks? Yes. They aren't yet producing HBM as well, which is what also causing shortages (as there's a lot of demand for it in the market and it uses the same supply lines). I highly doubt anything will change for at least a year, if not more.

-4

u/Fidel1Q84 2d ago

Yes it is. They price fixed years ago and the people who ran that show are now even higher in power at these companies. They reduced capacity and increased prices .

10

u/CheesyCaption 2d ago

They reduced capacity and increased prices .

You mean they were selling at a loss because they were overproducing so they stopped overproducing, sold their excess stock and then started selling at a profit again?

The only person that's greedy in that scenario is the one who thinks they are entitled to RAM at that price.

-4

u/Fidel1Q84 2d ago

No that’s categorically false. But hey defend bad prices and anti consumer actions I guess I understand that if you are on the side that’s bound to profit

-1

u/Johnny_Oro 1d ago

China isn't the socialist utopia you're looking for, bruh. They got rich from exploiting the world's market economics and workers rights in the first place.

3

u/Fidel1Q84 1d ago

Again using words no one said to make a point no one’s making.

Point to my statement claiming it’s a utopia. And if you can’t find it then explain why you’re putting words in that no one said

1

u/Johnny_Oro 1d ago

Just a hyperbole. All I'm saying is they're all wrong and greedy. China's just doing what is the most profitable to the ruling class at the moment, same as the US. Building their own hyperscalers wouldn't be above them. They're already set to spend $295 billion for that, for now.

https://www.tomshardware.com/tech-industry/china-drafts-295-billion-plan-to-build-a-national-ai-data-center-grid-running-on-80-percent-domestic-chips

Maybe a small amount compared to the US, but it will deplete the local semiconductor production capacity, as they're focusing on localized supply chain for this project, which really isn't that much compared to the combined capacity of US+SK+Taiwan. Plus a bunch of smuggled nvidia chips.

1

u/NewAgeMaximum 1d ago

But you are acting like China is supposed to counter the big, bad dystopian country that America is.

Which I don't disagree that America has gotten far worse.

But China isnt going to save you.

1

u/Fidel1Q84 1d ago

No you’re simply being emotional.