Memory stocks are getting hammered. China and a 2029 oversupply are the big worries

Korea KOSPI Index displayed on a smartphone with SK hynix and Samsung logo displayed.Cfoto | Future Publishing | Getty ImagesMemory chip stocks have taken a particularly bad beating this week amid broader equity market turmoil.Two concerns are adding to the pressure — the debate over whether Chinese competition is threatening memory incumbents and speculation about when the market could become oversupplied.Over the last five days, SK Hynix has plunged 26%, Samsung has tanked 22% and Micron has dropped around 11%.China worriesThe initial jitters came at the start of the week after China's leading memory chipmaker ChangXin Memory Technologies, or CXMT, announced plans to roll out a server memory product based on new architecture. CXMT's design would allow higher storage density, raising concerns that the breakthrough could result in the Chinese company taking global market share from rivals Samsung, SK Hynix and Micron.However, a number of analysts questioned whether CXMT would be able to scale the production of such an advanced technology."The issue, of course, was with any architectural change ... you can make the chips, but what yield are you getting? If you're only getting a 50% ...