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Huawei & memory manufacturer CXMT: Stress among Chinese spies?

The relationship between the Chinese memory manufacturer CXMT and China’s flagship technology group Huawei has apparently deteriorated massively recently. According to industry rumors, Huawei is said to have “stolen” trade secrets from CXMT.

China’s tech giants steal from each other

Huawei and other Chinese companies have been accused of unlawfully appropriating information about other companies’ products and technologies in the past. A special case has now become known according to which Huawei obtained extensive data on the technologies used by the Chinese memory manufacturer ChangXin Memory Technologies (CXMT) and passed it on to a competing company.

Apparently there was some kind of cooperation between Huawei and CXMT, which involved the development of systems that were used to test products from a subsidiary of the memory manufacturer. During the cooperation, Huawei is said to have copied all relevant data on the tests carried out by CXMT and then passed it on to a third-party company called Fujian Jinhua, in which Huawei itself is involved.

No more storage discounts for Huawei

CXMT later became aware of the alleged partner’s actions and apparently reacted anything but enthusiastically. Loud Report From China and Taiwan, there are said to have been meetings between senior managers from CXMT and Huawei founder Ren Zhengfei, at which the action was discussed and was massively criticized by the memory manufacturer. In the meantime, in response to the “data theft” by Huawei, CXMT is said to have decided that the electronics company should no longer receive any further discounts on memory products. For Huawei, this means that, especially in the current period of extremely high memory prices, you will not receive any discounts from CXMT when purchasing DRAM and NAND memory and will therefore have to pay significantly higher prices.

In return, however, CXMT also has to accept that the previously extremely good relationship with its largest customer to date has been massively impaired. Apparently Huawei was recently the main buyer of CXMT and bought around 60 percent of the company’s total production volumes. Observers assume that the two companies, which are heavily supported by the state, will ultimately come to an agreement in their current dispute – possibly under pressure from the Chinese government.

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