The development of DDR4 memory chips has been basically completed while the capacity is still hard to guarantee according to GUOXIN MICRO
Although price rising of DRAM stops in Q4, the prices of DDR4 memory and LPDDR4 mobile memory are still high with 2 years accumulation. China imported $12.8 billion memory chips last year, which may exceed $100 billion this year. DRAM production is mastered by Samsung, SK Hynix and Micron now, there aren’t any Chinese company to produce DRAM chips. GUOXIN MICRON is said to have the capability of prevailing world’s level to produce DRAM chips. The company affirmed DDR4 chips development has been basically completed earlier, but the downstream manufacturing hadn’t been improved yet so the capacity is hard to guarantee.
GUOXIN MICRO is the previous Xi’an UnilC renamed as GUOXIN MICRON in May this year. Tsinghua Unigroup sets up Unigroup Guoxin Co., Ltd. with Chongqing Municipal Government and National Integrated Circuit Industry Fund in June this year with a $14.5 billion registered capital, which will seek for IPO taking use of Unigroup Guoxin. As a result, Xi’an UniIC is renamed as Unigroup Guoxin Microelectronics Co.,Ltd., GUOXIN MICRON for short.
According to official website, Xi’an UniIC Semiconductors Co., Ltd.(Xi’an UniIC) was formerly known as Xi’an Sinochip Semiconductors Co., Ltd. which was restructured from Qimonda Technologies (Xi'an) Co., Ltd. in 2009. The company was initially founded in later 2003 as memory product development department of Infineon Technologies (Xi’an) Co., Ltd. After the spin off of Qimonda Technologies from Infineon in 2006, it became an independent legal entity named Qimonda Technologies (Xi'an) Co., Ltd. In May 2009, Inspur Group acquired the liquidating Qimonda Technologies (Xi'an) Co., Ltd. and renamed it to Xi'an Sinochip Semiconductors Co., Ltd. In 2015, Unigroup Guoxin Co., Ltd. acquired Xi’an Sinochip Semiconductors Co., Ltd. and renamed it to Xi’an UniIC Semiconductors Co., Ltd. .
In other words, GUOXIN MICRON has finished its DDR4 design and development but getting into trouble with no DRAM wafer fab. Thus, it is hopeless to get public without production.
There are two major projects of DRAM manufacturers, who are Hefie Changxin/GigaDevice and Fujian Jinhua/UMC. But the DRAM production schedule of Jinhua/UMC will be impacted by sanction with Micron because of patent disputes. The DRAM project of Hefei Changxin is said to finish development of 19nm DRAM chips before the end of this year and the production will be realized in next year. What’s more, the initial capacity and yield will not reach a high level. Thus, even if they get the help with GUOXIN MICRON the problem is hopeless to be solved in a short time.
All in all, as GUOXIN MICRON said the DRAM capacity is hard to guarantee.