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China Chipmaker Boosts Local Suppliers
6 Nov
Summary
- YMTC plans 70% domestic sourcing for its fourth factory.
- New factory will produce advanced NAND chips for data centers.
- US export controls are driving China's chip localisation efforts.
Yangtze Memory Technologies Co (YMTC), China's leading flash memory chip producer, is reportedly planning to source as much as 70% of the equipment for its upcoming fourth factory from domestic suppliers. This strategic shift represents a substantial advancement in China's efforts to reduce its dependency on foreign chipmaking technology, particularly in light of U.S. export controls imposed in December 2022.
The new facility, slated for construction in Wuhan starting next year, will focus on producing YMTC's most advanced NAND flash memory chips. These chips feature over 300 layers of memory cells stacked vertically, enabling higher storage density crucial for data centers and artificial intelligence applications. This advanced capability would surpass what rivals like Samsung and SK Hynix can currently produce within China.
This increased localisation target is expected to benefit Chinese equipment manufacturers such as Naura Technology Group and Advanced Micro-Fabrication Equipment. While YMTC still relies on overseas suppliers for highly sophisticated tools in areas like lithography and inspection, progress is evident in essential stages like wafer cleaning, polishing, and etching. The expansion plans, including two additional factories, aim to more than double YMTC's manufacturing capacity.
