YMTC Plans Major Expansion Amid Rising Trade Pressures
Chinese chipmaker Yangtze Memory Technologies (YMTC) is preparing to expand its manufacturing capacity significantly, even as trade tensions between China and the United States intensify. According to sources familiar with the matter, the company intends to construct two additional factories alongside a third facility that is nearing completion.
These developments reflect China’s broader effort to reduce reliance on foreign semiconductor technologies. At the same time, the United States continues to tighten restrictions aimed at limiting China’s technological progress. Earlier this month, a bipartisan group of US lawmakers proposed further curbs on the export of chipmaking equipment to China.
New Facilities Set To Double Output Capacity
The three planned factories are expected to dramatically increase YMTC’s production capabilities. Each facility will reportedly have the capacity to produce 100,000 wafers per month once fully operational. Consequently, total output from these new plants would more than double the company’s current capacity.
At present, YMTC operates two fabrication plants with a combined monthly capacity of 200,000 wafers. The addition of three new facilities marks a significant scaling effort, particularly in the face of ongoing external restrictions.
Sources indicated that details regarding these expansion plans, including the nearly completed factory, are being disclosed publicly for the first time. However, the company has not issued an official response.
Strengthening Domestic Supply Chains
The third factory, located in Wuhan like YMTC’s existing facilities, is expected to begin operations later this year. It should reach a production level of 50,000 wafers per month by 2027. Construction of the building has already been completed, and equipment installation is currently underway.
Notably, more than half of the equipment for this facility has been sourced from domestic suppliers. This includes essential tools used in the vertical stacking of chip layers. Such localisation efforts highlight YMTC’s strategic shift towards strengthening its domestic supply chain.
Moreover, the company has deepened its collaboration with local equipment manufacturers following its inclusion on the US Commerce Department’s Entity List in December 2022. These partnerships are expected to play a crucial role in sustaining production growth.
Rapid Advances In Technology And Market Position
Founded in 2016, YMTC has quickly developed its technical expertise, supported by local government backing and state-funded investment initiatives. Analysts suggest that its latest Xtacking 4.0 architecture is comparable to offerings from leading global competitors.
Although YMTC primarily serves the domestic market, it has steadily expanded its global presence. The company held an 11.8 percent share of the global NAND flash market last year. Projections indicate that this figure could surpass 14 percent by early 2027.
In addition to NAND flash memory, YMTC is also making progress in DRAM development. The company has begun distributing low-power DRAM samples to clients and expects to receive feedback by the end of the year. This input will guide future production strategies.
Furthermore, all three new plants are expected to allocate some capacity to DRAM manufacturing. However, the exact proportion will depend on the company’s technological advancements in this segment.
With inputs from Reuters
