BUZZ — Citi says chip selloff tied to CXMT DRAM concerns is overdone

* Citi says it expects China's CXMT's planned 4F2 DRAM technology (a denser memory-chip design) to have a "limited" effect on global memory-chip supply * Reported technological progress by CXMT has fueled concerns about increased competition from China's AI players on Tuesday, driving losses in global chip stocks * The Philadelphia semiconductor index fell to its lowest in over 3 weeks and for a fifth straight session on Tuesday * "CXMT is developing 4F2 on its legacy node 1y-nm (an older manufacturing process), with mass production unlikely before 2028," Citi says, adding that the Chinese chip maker remains four generations behind leading DRAM producers * Citi says manufacturing costs for the technology may be about 10-20% higher * The bank also cites CXMT's likely limited access to advanced EUV equipment (chipmaking lithography tools) as a hurdle to further scaling, while Samsung and SK Hynix are expected to use 4F2 on more advanced nodes * US storage and memory stocks fall in premarket trading, with Micron Technology, Sandisk, Western Digital and Seagate Technology falling between 1% and 2.3% (Reporting by Ragini Mathur in Bengaluru) ((mailto:Ragini.Mathur@thomsonreuters.com;)