YMTC plans new fabs to boost capacity amid rising US-China tensions
Chinese memory chipmaker Yangtze Memory Technologies (YMTC) is planning to build two additional plants alongside a facility nearing completion, in a move that would more than double its production capacity, according to a Reuters report citing sources familiar with the matter.
The three new fabs are expected to each reach a capacity of 100,000 wafers per month when fully operational, sources told Reuters. Combined with YMTC’s existing output, this would mark a significant expansion for China’s largest NAND flash memory producer.
YMTC currently operates two fabs with a combined monthly capacity of around 200,000 wafers, the sources said.
The third plant, located in Wuhan, is expected to begin operations later this year and reach a capacity of 50,000 wafers per month by 2027. Sources cited by Reuters said construction has been completed and equipment installation is underway, with more than half of the tools sourced from domestic suppliers.
The expansion comes amid continued efforts by China to reduce reliance on foreign semiconductor technologies, as the United States tightens export restrictions targeting advanced chipmaking capabilities. Earlier this month, U.S. lawmakers proposed further curbs on exports of semiconductor equipment to China.
YMTC was added to the US Department of Commerce Entity List in December 2022, restricting its access to American technology. Since then, the company has strengthened ties with local suppliers, including Advanced Micro-Fabrication Equipment (AMEC), according to Reuters sources. Both YMTC and AMEC did not respond to requests for comment.
According to a UBS report referenced by Reuters, YMTC held an 11.8% share of the global NAND flash market last year. By comparison, Samsung led the market with 30.4%, followed by competitors including SK Hynix, Kioxia, and Micron Technology.
Reuters also reported that YMTC is expanding into DRAM, signalling broader ambitions in the memory segment.
The company has not publicly commented on the expansion plans.