SK Hynix Rally and China's CXMT Push Signal a Memory Chip Land Grab

SK Hynix stock climbed sharply as a global shortage of memory chips continued to support prices and demand for the South Korean chipmaker's products. The shortage, which has been building for months, is giving established suppliers pricing power they have not had in years. At the same time, China's CXMT is preparing to expand into flash memory, a move that would put it in direct competition with Samsung and YMTC, according to a person familiar with the matter. The push shows Chinese chipmakers see the current shortage as an opening to gain share in a market segment they have largely trailed in. What remains unclear is how quickly CXMT can scale flash-memory output and whether that capacity arrives before or after the current shortage eases, which would determine whether the entrant helps relieve tight supply or simply adds capacity into a market that has already turned.