China: AI-driven demand reshapes China's memory chip industry.

Storyline AI-driven demand reshapes China's memory chip industry In China, the explosive growth of AI data centers has ignited strong demand for memory chips, prompting the entire supply chain, from packaging material makers to equipment suppliers, to ramp up production. In China's southern tech hub of Shenzhen, a company that makes IC packaging substrates used in memory chips is operating at full capacity, with some clients exchanging their small-batch orders for bulk purchases. Yue Changlai, President, Shenzhen Hemei Jingyi Semiconductor Technology Co.,Ltd.: "Our production lines in Shenzhen and Jiangmen are running at full capacity. The factories are operating around the clock, and there are still customers scrambling for production capacity." Meanwhile, a company that supplies chip placement equipment from south China's Dongguan City says shipments in H1 roughly doubled year on year, prompting them to expand their local production space by 50 percent to meet demand. Yang Yang, General manager, Attach Point (APIE): "AI needs massive amounts of memory chips to work and that's created huge opportunities for our industry. Domestic chip designers are all ramping up production, which means they need manpower, equipment, and facilities to package these chips. It's genuinely pushing the whole industry forward in big strides." Some Chinese chip makers are transitioning to bigger and bolder financial markets. In late July, Chinese memory chipmaker ChangXin Memory Technologies surged more than 465 percent during its debut on the Shanghai STAR Market, closing at about seven dollars and twenty-two cents per share, and making it China's most-valuable listed company on the A-share market. [Restrictions: No access Chinese mainland]