Musk remarked that China enjoys systemic strengths when it comes to large-scale manufacturing. Once it gains proficiency in producing a particular product, its capacity to scale up frequently surpasses the cumulative production of all other countries globally. He substantiated this claim with examples from the lithium battery and solar energy industries. Furthermore, Musk highlighted China's swift advancements in the memory chip sector, expressing confidence that the nation is swiftly surmounting obstacles related to general standard specifications, such as LP5 and LP6. Earlier, ChangXin Memory Technologies unveiled a significant breakthrough in next-generation 4F² memory cell architecture, with plans to introduce DDR5 server memory products based on this architecture by the end of 2026, specifically targeting the lucrative AI server DRAM market. The confluence of this news and Musk's observations triggered a downturn in the U.S. stock market's chip sector, with memory chip-related stocks bearing the brunt of the losses. Nevertheless, certain AI analysts contend that the current sell-off in memory stocks represents an exaggerated market response and is unwarranted.