On July 29, 2026, Chinese storage chip maker ChangXin Memory Technologies (CXMT) officially announced that its self-developed 1βnm DRAM process had passed reliability verification, with mass production expected to begin in 2027. This breakthrough is not only a major leap in China's semiconductor manufacturing capabilities but also a bombshell in the global memory market landscape. For deep-tech investors, this event once again confirms the underlying logic of heavy investment in deep-tech: autonomous control over technology, rigid demand, and dual drivers of policy and capital.

1βnm DRAM: A Key Step from Catch-Up to Running Neck and Neck

1βnm is the sixth-generation DRAM process node. Currently, only global giants like Samsung, SK Hynix, and Micron can mass-produce it. CXMT’s breakthrough means China has officially entered the global first tier in memory chips. According to industry insiders, 1βnm offers about 15% higher storage density, 20% lower power consumption, and 10% faster speed compared to the previous 1αnm generation. This will directly serve high-value-added markets such as data center servers, AI accelerators, and high-end mobile devices.

CXMT’s R&D success is no accident. Since 2025, Phase III of the National Big Fund has focused on storage chips, combined with local government industry fund support, with cumulative investment exceeding 80 billion yuan. Meanwhile, the company has ramped up talent recruitment and equipment procurement, now holding over 3,000 DRAM-related patents. This breakthrough will significantly boost China's storage chip self-sufficiency and reduce reliance on imports.

Deep-Tech Investment Logic: Why Storage Chips Are the ‘Cornerstone’

Storage chips always occupy a core position in the deep-tech investment universe. The underlying logic has three pillars:

  • High demand certainty: AI model training, cloud computing, autonomous driving, and other scenarios drive exponential demand growth for DRAM and NAND. According to IDC, the global DRAM market will exceed $150 billion in 2026, and the NAND market $80 billion.
  • Deep technology moat: From design to manufacturing and packaging, storage chips require billions of dollars in capital investment and over a decade of experience accumulation. Once mass production capability is established, the moat is extremely difficult to breach.
  • Vast localization potential: Currently, China's DRAM self-sufficiency rate is below 5%, and NAND about 8%. Under external technology restrictions, every 1% increase in market share for domestic storage chips corresponds to approximately 20 billion yuan in additional revenue.

This 1βnm DRAM breakthrough will accelerate the localization process. By 2028, CXMT’s global DRAM market share is expected to rise from the current ~3% to 8-10%, directly driving the entire upstream equipment, materials, and EDA tool supply chain.

Memory Chip Price Trends: Recovery Expectations Strengthen

In terms of memory chip prices, DRAM and NAND experienced moderate increases in the first half of 2026. For example, DDR5 16Gb particles were quoted at $4.2 on July 28, up 12% from the beginning of the year; NAND TLC 256Gb particles remained around $3.8. With continued growth in AI server shipments and the upcoming consumer electronics peak season, prices are expected to further strengthen in the second half. While CXMT’s mass production news has limited short-term impact on the spot market, it will shift supply-demand dynamics in the medium to long term: domestic capacity release will ease cyclical fluctuations and stabilize storage chip prices. For buyers, monitoring domestic manufacturers’ capacity ramp-up pace and locking in long-term supply agreements early is recommended.

Policy and Capital Resonance: Time to Double Down on Deep-Tech

At the national level, the 2026 Government Work Report clearly stated ‘building a semiconductor powerhouse’ and listed storage chips as a key area for breakthroughs. At the local level, cities like Hefei, Shanghai, and Beijing have introduced additional IC industry support policies, offering up to 30% investment subsidies for advanced process projects. On the capital markets front, deep-tech fund sizes reached a record high in the first half of 2026, totaling over 300 billion yuan, with storage chips accounting for about 25%.

Multiple fund managers stated in interviews that CXMT’s technological breakthrough is a ‘milestone event’ that will drive a revaluation of the entire semiconductor sector. Foundries such as SMIC and Hua Hong Semiconductor are also expected to benefit from equipment demand driven by storage chip capacity expansion.

Investment Strategy: Focus on Three Main Lines

  • Major equipment & materials: Localization rates for etch, thin film deposition, cleaning, etc. remain low; companies like Naura Technology and AMEC have growth potential.
  • Packaging & testing: 3D stacking, Chiplet, and other technologies drive advanced packaging demand; JCET and Tongfu Microelectronics are expected to undertake storage chip packaging orders.
  • Storage interface & interconnect: Standards upgrades like CXL and DDR5 bring incremental markets for design companies such as Montage Technology and Juquan Shares.

At the same time, investors should be aware of risks: R&D falling short of expectations, geopolitical frictions, and price wars from overcapacity.

Conclusion

CXMT’s 1βnm DRAM breakthrough epitomizes China’s deep-tech transition from ‘catch-up’ to ‘running neck and neck.’ Driven by waves of AI, digital economy, and IT localization, storage chips as fundamental infrastructure have rock-solid investment logic. Heavy investment in deep-tech essentially bets on a nation’s certain future of technological autonomy and industrial upgrading. For long-term investors, now remains a golden window to position in deep-tech.

The information provided in this article is for reference only and does not constitute investment advice. Markets involve risks; invest with caution.