Memory Giants Abandon In-House CXL Controller Development

According to South Korean media outlet ZDNet Korea, Samsung Electronics, SK Hynix, and Micron Technology, the world’s three largest memory chip manufacturers, have recently halted or significantly reduced their in-house development programs for next-generation Compute Express Link (CXL) controller technology.

The report indicates that the companies’ strategic shift is mainly aimed at avoiding potential “self-cannibalization.” If they aggressively commercialize their own high-end CXL controller chips, these products could potentially reduce demand for their core revenue source — traditional DRAM modules (DIMMs). As a result, the three memory giants are rapidly moving away from fully self-developed solutions and adopting an outsourced model that relies on specialized fabless semiconductor companies.

Memory Giants Shift from Internal Development to External Solutions

According to semiconductor industry sources, Samsung Electronics, SK Hynix, and Micron have all scaled back or suspended commercialization plans for internally developed CXL controllers used in CXL expansion devices. The market opportunities originally targeted by these companies are now being filled by fabless semiconductor firms such as Montage Technology, Astera Labs, and PrimeMass.

Micron was reportedly the first among the three companies to abandon independent CXL controller development. The company has dissolved its dedicated CXL controller development team and is now adopting PrimeMass’s solutions. PrimeMass-based products have also appeared in Micron’s product portfolio.

SK Hynix has recently informed major partners that it will discontinue its in-house CXL controller development program. The company is reallocating related engineering resources toward Processing-In-Memory (PIM) technology, a next-generation memory computing architecture, with the goal of concentrating R&D efforts on areas with clearer long-term growth potential.

Samsung Electronics has taken a more cautious approach. The company has removed its internally developed CXL controller project from its main product development roadmap while maintaining it only as an internal research initiative. The team is now exploring emerging areas such as LPDDR-based CXL solutions, which have not yet reached commercial maturity. For external product launches, Samsung plans to adopt controllers developed by fabless semiconductor companies.

This marks a significant departure from Samsung’s original strategy. The company previously planned to introduce CXL Memory Module (CMM) products that combined its own controller technology with DRAM components. However, the commercialization roadmap for its proprietary CXL controller has reportedly been removed.

A semiconductor industry source explained that Samsung’s product planning team has shifted the self-developed controller from a commercialization project to an advanced research initiative. The current focus is mainly on areas such as mobile DRAM integration with CXL, which still have uncertain near-term market prospects.

Business Model Conflict Between Integrated and Modular CXL Solutions

Industry analysts believe the strategic adjustment is largely driven by a conflict between the business models initially envisioned by memory manufacturers and the actual requirements of major customers.

The three companies originally aimed to develop high-value integrated CXL memory solutions by combining proprietary controllers and DRAM chips on a single module. Such products would have been positioned as premium solutions for data center applications.

However, large data center customers are increasingly seeking cost-efficient and flexible architectures. Instead of purchasing integrated CXL modules, many customers prefer a modular approach that allows them to install standalone CXL controllers on system motherboards and reuse widely available, lower-cost standard DRAM DIMMs.

This difference in market demand created a potential cannibalization problem. If memory manufacturers aggressively promoted expensive integrated CXL products, customers might reduce purchases, while demand for conventional DRAM modules — their existing high-volume business — could also decline.

A semiconductor industry executive commented, “From the perspective of memory manufacturers, it would be difficult to aggressively promote CXL expansion products if they directly compete with their core DIMM business. Avoiding unnecessary conflicts and risks makes more business sense than forcing commercialization of proprietary controllers.”

Strategic Adjustment Does Not Mean Abandoning CXL Technology

Experts emphasize that the decisions made by Samsung, SK Hynix, and Micron should not be interpreted as a retreat from CXL technology or the market. Instead, the move reflects a more practical approach to managing risks during the early stages of CXL adoption and highlights the importance of specialization within the semiconductor ecosystem.

Industry observers believe that cooperating with fabless semiconductor companies allows memory manufacturers to focus on their core strengths in DRAM production and advanced memory technologies, while specialized chip design companies handle controller development.

A semiconductor industry source noted that rather than attempting to control the entire CXL ecosystem, memory companies are choosing a collaborative model based on industry specialization. As the semiconductor market continues to evolve, the trend of fabless companies focusing on chip design while memory manufacturers concentrate on manufacturing and process technologies is expected to accelerate.