GigaDevice Proposes $825M DRAM Purchase from Affiliate CXMT, Targeting Legacy Memory Market

GigaDevice plans a massive scale-up in DRAM procurement from its affiliate CXMT, proposing an $825 million cap for 2026, nearly five times the previous year's amount.

This strategy aims to capture the underserved legacy DRAM market (DDR3/DDR4), as major players like Samsung and SK hynix are reallocating production to high-margin HBM for AI.

By integrating CXMT's manufacturing with its own sales channels, GigaDevice could emerge as a significant fourth competitor in the commodity DRAM space, challenging smaller incumbents.

China's GigaDevice is making a bold move to capture a significant piece of the global memory market.

The company is asking shareholders to approve an $825 million spending cap to buy DRAM chips from its affiliate, ChangXin Memory Technologies (CXMT), in 2026. This isn't just a routine supply agreement; it's a nearly five-fold increase from 2025's actual purchases, signaling an aggressive strategy. The fact that the same chairman, Zhu Yiming, leads both companies underscores this is a deeply integrated plan to combine manufacturing muscle with a powerful sales engine.

So, why this massive ramp-up now? The answer lies in the AI boom. First, the world's top three memory makers—Samsung, SK hynix, and Micron—are shifting their production capacity to HBM (High Bandwidth Memory), the specialized, high-margin memory essential for AI accelerators. This strategic pivot creates a supply shortage in the market for older, so-called 'legacy DRAM' like DDR3 and DDR4. These are the workhorse chips found in countless consumer electronics, automotive systems, and industrial devices. As supply tightens, prices for these legacy chips have been climbing steeply.

Second, GigaDevice is perfectly positioned to fill this void. By securing a massive, dedicated supply from CXMT, it aims to become a reliable, high-volume source for legacy DRAM just as other suppliers are looking away. This move could turn GigaDevice into a formidable fourth player in the commodity DRAM segment, putting pressure on smaller, specialized competitors like Nanya and Winbond.

Finally, the geopolitical landscape offers a subtle tailwind. Although broader US restrictions remain, CXMT was briefly removed from a Pentagon list of 'Chinese military companies' earlier in 2026. This event, though temporary, may have eased concerns for some international customers, potentially widening the market for GigaDevice-branded DRAM. This entire strategy is a calculated bet on turning the market's focus on high-end AI into a golden opportunity in the foundational memory business.

Legacy DRAM: Older generations of Dynamic Random-Access Memory, such as DDR3 and DDR4. While not the latest technology, they are still widely used in a vast range of electronic devices.
HBM (High Bandwidth Memory): A high-performance type of memory used in high-end graphics cards and AI accelerators. It offers much higher bandwidth than conventional DRAM, which is crucial for processing large datasets in AI applications.
Related-Party Transaction: A business deal or arrangement between two parties who are joined by a pre-existing special relationship, such as a parent company and its subsidiary, or two companies controlled by the same person.

GigaDevice Proposes $825M DRAM Purchase from Affiliate CXMT, Targeting Legacy Memory Market

GigaDevice plans a massive scale-up in DRAM procurement from its affiliate CXMT, proposing an $825 million cap for 2026, nearly five times the previous year's amount.

This strategy aims to capture the underserved legacy DRAM market (DDR3/DDR4), as major players like Samsung and SK hynix are reallocating production to high-margin HBM for AI.

By integrating CXMT's manufacturing with its own sales channels, GigaDevice could emerge as a significant fourth competitor in the commodity DRAM space, challenging smaller incumbents.

China's GigaDevice is making a bold move to capture a significant piece of the global memory market.

Legacy DRAM: Older generations of Dynamic Random-Access Memory, such as DDR3 and DDR4. While not the latest technology, they are still widely used in a vast range of electronic devices.
HBM (High Bandwidth Memory): A high-performance type of memory used in high-end graphics cards and AI accelerators. It offers much higher bandwidth than conventional DRAM, which is crucial for processing large datasets in AI applications.
Related-Party Transaction: A business deal or arrangement between two parties who are joined by a pre-existing special relationship, such as a parent company and its subsidiary, or two companies controlled by the same person.