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China Chip Giant YMTC Plans Production Surge
14 Apr
Summary
- YMTC plans two new factories, tripling its current production capacity.
- The third factory, in Wuhan, begins operations late this year.
- YMTC's latest technology rivals sector leaders like Samsung Electronics.
Yangtze Memory Technologies (YMTC), a prominent Chinese NAND flash memory chip manufacturer, is embarking on a significant expansion by planning two additional factories. These new facilities, once operational, will more than double the company's current production capacity. The third YMTC factory, situated in Wuhan, is scheduled to commence operations by the end of this year, with equipment installation underway.
This expansion is a strategic move for China to decrease its dependence on foreign semiconductor technologies, a sector where the United States has imposed restrictions. YMTC's technological progress has been notable; its latest Xtacking 4.0 architecture is considered on par with global leaders such as Samsung Electronics. Despite U.S. sales restrictions, YMTC captured 11.8% of the global NAND flash market last year and is predicted to increase its share.
The company is also venturing into DRAM chip production, with all three new plants slated to allocate some capacity for this purpose. YMTC has submitted low-power DRAM samples to clients for feedback, which will guide its future production decisions in this area. The company has also strengthened ties with domestic suppliers, sourcing over 50% of the equipment for its third factory locally.
