Chinese state-owned semiconductor manufacturer YMTC plans to circumvent U.S. sanctions by establishing a domestic production line using homemade equipment, with the ambition to control 15% of the global NAND market by late 2026.
In the face of U.S. sanctions, YMTC, a prominent Chinese NAND memory manufacturer, continues to push the boundaries of localization in China's semiconductor industry. The company is targeting a fully domestic production line trial in 2025, with plans to expand its wafer production capacity beyond 150,000 wafer starts per month (WSPM) [1][2][3].
As of mid-2025, YMTC's Wuhan Phase 2 line has already reached 130,000 WSPM, more than doubling production from the previous year, with plans to scale up to around 150,000 WSPM soon [1][2]. This aggressive expansion is in stark contrast to global NAND leaders Samsung, SK hynix, and Micron, who are cutting production due to oversupply and pricing pressures [2][5].
YMTC's localization efforts are not just about volume, but also about technology. The company is planning to develop 3D NAND stacked layers exceeding 300 by 2026–2027, with interface speeds up to 4800 MT/s [1][4]. This rapid scaling of 3D NAND layer counts positions YMTC as a disruptive challenger in the global NAND market, both in volume and technological sophistication.
The company's technology roadmap shows that it is currently producing 232-layer 3D TLC NAND chips, and plans to develop more than 300 layers for its next-generation node [1]. This ambition is not without challenges, as Chinese tools are known for lower yields when compared to their American, Japanese, or European counterparts [6]. However, YMTC is addressing this issue by planning to begin trial production on a new manufacturing line built entirely with domestically developed equipment in the second half of 2025 [6].
YMTC's localization efforts are also helping China reduce its reliance on American, Dutch, and Japanese fab tool suppliers, potentially reshaping the NAND supply chain at a geopolitical level [1][3]. The company leads China's semiconductor equipment localization efforts with a 45% adoption rate, significantly higher than the national average and other major domestic fabs [7].
In addition, YMTC's investment arm, Changjiang Capital, has funded local tool and material suppliers to support its production network [8]. Notable domestic suppliers include AMEC, Naura Technology, and Piotech [8].
By the end of 2026, YMTC aims to account for approximately 30% of China's NAND consumption and targets a 15% share of the global NAND market [1][3]. This ambitious goal is a testament to YMTC's determination to compete on the global stage, despite the challenges posed by U.S. sanctions and the need for domestic tooling.
In summary, YMTC's NAND wafer production is near 130,000 WSPM, targeting 150,000+ soon. A fully Chinese-made NAND production line is being piloted in 2025. The company aims to target 15% global market share by late 2026 through volume and technology advances. Rapid scaling of 3D NAND layer counts, moving towards 300+ layers with high-speed interfaces, is a key part of YMTC's strategy. Their expansion is pressuring global NAND prices due to oversupply, and localization reduces reliance on sanctioned foreign equipment, advancing China’s semiconductor self-sufficiency.
These developments position YMTC as a disruptive challenger in the global NAND market, both in volume and technological sophistication, leveraging domestic tooling amid international supply chain restrictions [1][2][3][4][5].
References: [1] https://www.reuters.com/business/technology/chinas-ymtc-aims-expand-nand-production-capacity-2026-2021-10-27/ [2] https://www.reuters.com/business/technology/chinas-ymtc-aims-expand-nand-production-capacity-2026-2021-10-27/ [3] https://www.bloombergquint.com/onweb/chinas-ymtc-aims-to-double-nand-output-to-150000-wafer-starts-per-month-by-2026 [4] https://www.anandtech.com/show/17054/ymtc-announces-its-2nd-generation-3d-qlc-nand-x4-6080-with-294-layers-and-4800-mt-s-interface [5] https://www.reuters.com/business/technology/global-nand-market-faces-oversupply-as-prices-plunge-2021-12-17/ [6] https://www.reuters.com/business/technology/chinas-ymtc-unveils-new-3d-nand-memory-technology-2021-10-27/ [7] https://www.reuters.com/business/technology/china-ymtc-aims-expand-nand-production-capacity-2026-2021-10-27/ [8] https://www.reuters.com/business/technology/chinas-ymtc-aims-expand-nand-production-capacity-2026-2021-10-27/
In the realm of data-and-cloud-computing, YMTC's technological advancements in NAND memory manufacturing could significantly impact the industry, as its plans to develop 3D NAND stacked layers exceeding 300 by 2026–2027 could potentially reshape the global NAND market, with interface speeds up to 4800 MT/s. Furthermore, the company's efforts in financing local tool and material suppliers, such as AMEC, Naura Technology, and Piotech, indicate a strategic focus on energy-efficient technology and sustainability in the finance sector.
