The Chinese manufacturer YMTC will expand its capacity in full technological tension with the US.

The Chinese semiconductor manufacturer Yangtze Memory Technologies Co. (YMTC) is preparing an ambitious expansion of its production capacity with the construction of new factories. As we see in Reuters, the company plans to build two additional plants that will be added to a third that is currently in the final phase. With this initiative, China reinforces its commitment to technological self-sufficiency within the well-known trade tensions with the United States.

When the three facilities come into operation, YMTC will more than double its production capacitygoing from the current 200,000 wafers per month to around 400,000. Each of the new plants will have a capacity of 100,000 wafers per month, consolidating the company as one of the most relevant players in the global NAND memory market.

A new plant in Wuhan powered by national suppliers

The third factory, located in Wuhanhas already been built and is in the process of being equipped. It is expected to begin operations at the end of this year and reach production of 50,000 wafers per month in 2027. This project stands out for its strong dependence on local suppliers, since more than 50% of the equipment comes from Chinese companies, including key tools for the vertical stacking of chips.

This move reflects YMTC’s effort to reduce its dependence on foreign technology (mostly from the United States) after its inclusion in the United States Entity List in December 2022. However, recent reports suggest that the US Office of Industry and Security has removed the company from said list, which could facilitate its expansion and access to advanced technologies.

Expansion towards DRAM memory and leadership in NAND Flash

In addition to reinforcing its leadership in NAND memories, YMTC plans to allocate part of the capacity of its new factories to the production of DRAM memory. The company has already sent samples of LPDDR to clients and hopes to receive first impressions before the end of the year, which will influence its future strategic decisions within this segment.

Currently, YMTC controls the 11.8% of the global NAND Flash marketplacing itself at the level of Sandisk and close to manufacturers such as SK Hynix, Kioxia and Micron. Samsung continues to lead the sector with a share of 30.4%, although forecasts suggest that YMTC will exceed 14% of the market by early 2027.

Xtacking 4.0 architecture boosts YMTC’s competitiveness

The company’s growth is supported by its innovative technology Xtacking 4.0considered competitive against the solutions of the main leaders in the sector. This architecture allows improve performance and efficiency in the manufacturing of 3D NAND memories, positioning YMTC as an increasingly relevant rival in the global semiconductor industry.

With this expansion, the Chinese manufacturer reinforces its strategic role within the global technological ecosystem and moves towards greater independence in the production of memory chips. The investment in new factories and technologies makes YMTC one of the key players in the future of the memory market, which is currently not going through its best moments.