Haesung DS Reportedly Supplies CXMT DDR5 Substrates

According to industry sources, South Korean semiconductor materials and components manufacturer Haesung DS has reportedly added ChangXin Memory Technologies (CXMT) to its DDR5 package substrate customer list and is evaluating panel-level manufacturing solutions for higher-layer DDR6 package substrates as its DDR5 business expands.

Sources indicate that Haesung DS completed DDR5 package substrate qualification testing with CXMT in the first quarter of 2026, followed by limited-volume shipments beginning in the second quarter that have started contributing to revenue. Supply volumes are expected to increase further in 2027. However, neither company has officially confirmed the partnership.

CXMT has been actively expanding its DDR5 and LPDDR5X product portfolio while increasing DRAM production capacity. Previous reports suggested that the company plans to raise its monthly DRAM wafer output to approximately 600,000 wafers through new factory construction and capacity expansion. However, CXMT’s DDR5 production yield remained relatively low during the first quarter.

Haesung DS currently manufactures package substrates primarily through a roll-to-roll production process. This method enables continuous material processing, offering high production efficiency and stable control over copper layer thickness and product dimensions. It is considered suitable for mass production of single-layer and low-layer-count package substrates used in DDR4 and DDR5 memory products.

In investor communication materials released in May, Haesung DS stated that mass production of its new DDR5 products accelerated from the second quarter, although it did not disclose specific customers. The company expects package substrate performance to improve through product price adjustments negotiated with major customers and increased shipments in the second half of the year.

At present, Haesung DS’ relevant production lines are operating at approximately 60% to 70% utilization, leaving additional capacity available to support new orders. As a result, the company does not plan to expand existing production capacity further in 2026.

However, as package substrates require more circuit layers, the efficiency and profitability of roll-to-roll manufacturing gradually decline. To address the growing demand for more advanced substrates for next-generation DRAM, Haesung DS is considering the adoption of panel-level manufacturing technology to produce higher-layer and higher-value-added substrates, including those designed for DDR6 applications.

Major memory manufacturers, including Samsung Electronics, SK hynix, and Micron Technology, are currently developing DDR6 technology, with industry expectations pointing to commercialization around 2028 to 2029.

Haesung DS is reportedly conducting an internal review of a panel-level manufacturing equipment investment worth approximately KRW 150 billion, with the total investment potentially reaching KRW 200 billion. The equipment is expected to be installed within existing space at the company’s Changwon facility, avoiding the need for additional land acquisition or new factory construction. However, Haesung DS has not yet officially announced a final investment decision.

Financially, Haesung DS reported first-quarter revenue of KRW 188.7 billion, representing a 37.2% year-over-year increase. Operating profit reached KRW 11 billion, compared with KRW 400 million in the same period last year, marking a significant improvement in profitability.

The potential cooperation between Haesung DS and CXMT highlights the growing demand for advanced memory packaging technologies as DRAM manufacturers accelerate DDR5 adoption and prepare for future DDR6 products. The transition from roll-to-roll to panel-level manufacturing could become a key technology shift for producing next-generation high-density memory package substrates.