The AI-fueled global memory shortage is hitting China particularly hard.

So much so that the country’s largest maker of dynamic random-access memory (DRAM) is pushing ahead with plans to produce advanced memory chips despite extremely low manufacturing yields.

Reuters reports , citing unnamed sources, that ChangXin Memory Technologies (CXMT) plans to begin limited production of HBM3E chips within the next two months.

HBM3E is an advanced type of high-bandwidth memory (HBM) used alongside AI processors. The technology stacks memory chips vertically, allowing them to transfer large amounts of data at high speeds. But these chips are difficult and expensive to manufacture.

CXMT has already sent samples to several Chinese AI chip designers, according to Reuters. However, only about 20% to 30% of the chips it produces meet specifications and are usable.

By comparison, South Korea’s SK Hynix, the global HBM market leader, reportedly has yields of around 70%.…