China’s memory-chip ambitions are moving into the heart of the artificial-intelligence supply chain. CXMT has begun producing small quantities of HBM3E, an advanced high-bandwidth memory used in AI chipsets, according to Reuters.
The company plans to expand production in 2027, while Chinese chip designers including Alibaba Group Holding Ltd’s (NYSE:BABA) T-Head and Cambricon are testing the memory with their processors.
The development could reshape the competitive landscape for Micron Technology Inc (NASDAQ:MU), SK Hynix Inc (NASDAQ:SKHY) and Samsung, while creating new opportunities across a growing group of ETFs targeting the global memory boom.
• Where are DRAM shares going?
CXMT Is Moving Beyond Conventional DRAM
CXMT is already the world’s fourth-largest DRAM producer, with roughly 7% of global DRAM market share, according to Counterpoint research. Its first-half 2026 revenue jumped 874%, underscoring how rapidly the company has scaled alongside the global memory shortage.
Its move into HBM3E is potentially more important. HBM is the stacked DRAM technology that sits alongside AI accelerators and enables them to process massive volumes of data. The market is currently dominated by Samsung, SK Hynix and Micron.
CXMT’s current HBM production is small, so it is not yet a peer competitor to those companies. But plans to scale in 2027 and testing by Chinese chip designers suggest Beijing wants a domestic memory supply chain capable of supporting its growing AI ecosystem.
Four ETFs, Four Ways to Play the Memory Boom
For investors, the development extends beyond one ETF.
Roundhill Memory ETF (BATS:DRAM) is the most direct memory-producer play. It owns global companies involved in HBM, DRAM, NAND and storage, including Micron, Samsung and SK Hynix, while also gaining economic exposure to CXMT. While Micron, Samsung and SK Hynix hold about 72% of the portfolio, cumulatively, CXMT is also a part of the holdings, with almost 5% weightage.
Tuttle Capital Concentrated Memory Stack ETF (BATS:HBMX) takes a broader approach. At least 80% of assets must be invested in memory-stack companies, with exposure spanning memory manufacturers, advanced packaging, substrates, testing and equipment. The fund recently added CXMT exposure through a total return swap.
Tema Memory ETF (NYSE:DISK) may offer the most direct CXMT angle. It established a 10.56% position in CXMT when the Chinese company went public in July. CXMT currently accounts for 7.6% of DISK, alongside SK Hynix, SanDisk Corp (NASDAQ:SNDK) and Micron.
Then there is KraneShares China Technology & Semiconductor STAR Market 50 ETF (NYSE:KSTR). Unlike the pure-play memory funds, KSTR provides broader exposure to China’s semiconductor ecosystem. But CXMT has become a direct holding following its STAR Market debut, making KSTR another way for investors to participate in China’s domestic memory push.
The Bigger Opportunity Is the Memory Bottleneck
The investment case is therefore bigger than just Micron versus CXMT.
AI models need increasingly powerful processors, but those processors also need enormous amounts of high-speed memory. As HBM, DRAM and NAND demand rises, companies supplying the memory, and the equipment and infrastructure needed to manufacture it, stand to benefit.
CXMT’s HBM3E breakthrough just adds another layer to that story. The global AI race is becoming a memory race, and investors now have several ETFs offering different ways to capture it.
Image created using AI
Login to comment