YMTC, the 100% Chinese memory manufacturer, to build two more plants: numbers close to Micron and SK hynix

The Chinese YMTC (Yangtze Memory Technologies Co.) is preparing for a significant industrial expansion that could redefine the balances in the memory sector. According to sources consulted by Reuters, the company intends to add two new facilities to the existing one that is already in an advanced stage of completion, with the goal of increasing total production capacity to 400,000 wafers per month, compared to the current 200,000.

The third plant, located in Wuhan alongside the existing facilities, is already built and in the process of equipment installation. The start of operations is expected by the end of the year, while production should reach 50,000 monthly wafers by 2027. Each new facility is designed for a maximum capacity of 100,000 wafers per month.

A truly interesting and notable aspect is that more than 50% of the machinery used in the new plant comes from local suppliers, including tools for the vertical stacking of NAND layers, a fundamental technology to increase memory density. This achievement is the result of a commitment from the Chinese industry and a development that is progressing at high speed, following the company's insertion into the 'Entity List' (foreign companies subject to import and export restrictions) by the U.S. government.

On the technological front, YMTC continues to focus on the Xtacking 4.0 architecture, which is considered competitive compared to the solutions offered by the main competitors in the sector. Currently, the company holds an 11.8% share of the global NAND market, on par with Sandisk and not far from players like SK Hynix, Kioxia, and Micron, while Samsung remains the leader with 30.4%.

Forecasts indicate further growth, with a share that could exceed 14% by early 2027. Meanwhile, YMTC has also initiated an expansion in the DRAM segment, a crucial sector with the boom of AI. All three new plants are expected to include dedicated lines for this type of chip as well.

The company has already sent LPDDR samples to customers and is awaiting feedback by the end of the year, which will clearly influence the speed at which DRAM production will be expanded. However, the location and operational timelines for the two additional plants remain to be clarified.