NEW YORK: Micron Technology shares fell on Monday, October 12, after Chinese memory-chip maker ChangXin Memory Technologies (CXMT) announced progress on a next-generation DRAM architecture that could reshape competition in the global memory market.
Micron (MU) shares dropped 3.58 per cent to $992.21 in early trading, leaving the stock around 15 per cent below its June all-time high.
South Korean memory-chip makers also recorded losses. SK Hynix shares fell 4.52 per cent, while Samsung Electronics declined 4.39 per cent. South Korea’s KOSPI index also came under pressure, falling by as much as 3.5 per cent.
The market reaction followed CXMT’s weekend announcement that it had achieved “key progress” in developing a new memory-cell architecture. The design focuses on increasing storage density, a major priority for leading DRAM manufacturers.
What Is the 4F Square DRAM Design?
The 4F square structure is central to CXMT’s reported development. In this design, each memory cell occupies an area equivalent to four squares of F, where F represents the minimum feature size used in the semiconductor design.
A smaller cell footprint allows manufacturers to fit more memory cells onto a chip, potentially increasing storage density.
Mainstream DRAM designs generally use a 6F square cell structure. Moving to 4F square would represent a significant architectural change, shifting from conventional horizontal transistor channels towards vertical channels.
According to CXMT, its design uses a Vertical Surrounding Gate transistor. This structure aims to control electrical leakage while reducing the area required by each memory cell.
New Architecture Could Increase Memory Density
CXMT president Cao Kanyu said the company aims to introduce a server memory solution based on the new architecture by the end of 2026. The planned developments include a next-generation DDR5 Registered DIMM (RDIMM).
The new architecture could increase memory density by 30 to 50 per cent, according to the claims outlined in the report.
Other major memory manufacturers are also pursuing 4F square technology. SK Hynix presented a roadmap for the architecture in 2025, while Samsung has reportedly outlined plans to begin mass production of sub-10-nanometre DRAM using the roadmap by 2028.
If manufacturers can overcome production and reliability challenges, denser memory designs could affect chip costs, capacity and competition across the industry.
What Lies Ahead for Micron?
Micron also faces a separate labour-related issue in Taiwan. A union there is seeking a permanent share of company profits, proposing that 15 per cent of operating profit be distributed to employees as quarterly bonuses.
Taiwan accounts for more than 80 per cent of Micron’s workforce, according to the information provided in the report. Any agreement could therefore have implications for the company’s labour costs.
Meanwhile, semiconductor stocks remain under pressure. Positioning in the options market for chip-focused exchange-traded funds has also been heavily tilted towards put options, reflecting demand for downside protection.
CXMT’s progress adds another competitive factor for global memory-chip makers. However, the commercial impact will depend on whether the company can bring the new architecture into production at scale and deliver the expected gains in density and performance.
