China’s Chip Production Growth: Three New YMTC Fabs to Increase Capacity to 300,000 Wafers Monthly Amid US Restrictions

As trade tensions escalate between the United States and China, Yangtze Memory Technology Co., Ltd.(YMTC) is proactively enhancing its chip manufacturing capabilities by launching new fabrication facilities.

YMTC’s Strategic Expansion Amidst Ongoing Trade Dynamics

The semiconductor sector is witnessing significant disruptions due to a trade conflict between the two economic powerhouses, the United States and China. The U. S.has implemented stringent export restrictions aimed at curbing China’s access to cutting-edge technologies essential for chip production. Recently, U. S.lawmakers proposed a prohibition on the export of ASML’s deep ultraviolet (DUV) lithography technology to China, further intensifying the situation.

In response to these mounting challenges, YMTC, a key player in China’s semiconductor landscape, has opted to bolster its domestic manufacturing capacity. The company is already in the process of constructing a new fab designed to produce 100, 000 wafers per month, projected to be operational later this year. However, recent reports from Reuters indicate that YMTC is planning to take an even more ambitious approach by building two additional fabs, each with an identical production capacity. This would result in a total output of 200, 000 wafers monthly from the new facilities.

Chinese chipmaker Yangtze Memory Technologies (YMTC) aims to build two more factories in addition to one that will be completed this year, which will more than double its production capacity when ‌all three are up and running, people familiar with the plans said.

The three new plants will each have the capacity to produce 100, 000 wafers per month when fully operational, said three sources who were not authorised to speak to media and declined to be identified.

via Reuters

This significant expansion will elevate YMTC’s wafer production capability from its current 200, 000 wafers per month to an impressive 400, 000 wafers monthly. Notably, over 50% of the required equipment, materials, and tools for this expansion are being sourced from domestic suppliers, including advanced tools for vertical stacking—a key area of focus as another Chinese firm, CXMT, progresses with 3D DRAM technology.

YMTC 128L QLC 3D NAND chip resting on an orange circuit pattern background. — YMTC NAND chip

All three new plants will allocate some capacity to DRAM production, two sources said, adding that the exact amount will depend on the company’s progress in developing those chips.

YMTC has sent low-power DRAM (LPDDR) samples to clients and expects feedback by the end of the year, which will inform DRAM production decisions, they added.

via Reuters

These new facilities will not only focus on NAND production but are also expected to dedicate some of their capacity to DRAM manufacturing. Although details on the specific DRAM output remain undisclosed, the company has already dispatched LPDDR samples to its clients to gather essential feedback ahead of full-scale production.

With these advancements, YMTC is positioned to enhance its global market share in NAND flash memory, potentially exceeding 14%, up from the current 11.8%.Such growth could influence the memory market landscape significantly.

News Source: Reuters

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