Major Chinese manufacturers, including Yangtze Memory Technologies Co., Ltd.(YMTC) and ChangXin Memory Technologies (CXMT), have initiated an ambitious strategy dubbed “Epic Expansion”to alleviate persistent shortages in the DRAM and NAND sectors.
Epic Expansion: A Bold Move by Chinese Memory Manufacturers to Combat Supply Constraints
As the shortages of DRAM and NAND persist, top Chinese firms like YMTC and CXMT have launched significant expansion strategies involving an investment of several billion dollars. This initiative is part of a concerted effort to mitigate ongoing memory and storage supply challenges.
Recent reports from Jiemian indicate that YMTC is on track to become the world’s third-largest storage manufacturer, aiming to capture over 10% of global NAND production. This bold expansion is backed by a substantial increase in revenue, which reportedly surpassed 20 billion yuan in Q1 of this year, marking an impressive year-on-year growth.
“Yangtze Memory Technologies Co., Ltd.’s revenue in the first quarter of this year exceeded 20 billion yuan, more than doubling year-on-year. Its NAND (flash memory) chip production has exceeded 10% of the global market share, approaching the third largest in the world, ” said a core person in the memory chip industry chain.“The profits will be even more explosive in the future.”
The aforementioned source added that, to ensure production capacity, Yangtze Memory Technologies Co., Ltd.(YMTC) will build two more factories this year, in addition to the one new factory already completed. Once all factories are operational, total production capacity will more than double, with each factory potentially reaching a monthly capacity of 100, 000 wafers – “a truly epic expansion.” The factory buildings are now complete.
This expansion encompasses the establishment of two additional manufacturing facilities, augmenting the already completed factory. Collectively, these plants are poised to deliver over 300, 000 wafers monthly, effectively doubling current output.
The impact of this development is noteworthy, as it aims to decrease reliance on international suppliers from Japan and the United States, offering domestic enterprises a more secure supply of memory products. Furthermore, YMTC’s strategy to utilize local tools and equipment will expedite production, significantly reducing verification timelines.
The memory shortage is so severe that even Chinese memory makers are now requiring prepayments. According to Chinese media reports, since the fourth quarter of last year, customers who want to secure memory from CXMT or YMTC have had to prepay channel distributors first. Once… https://t.co/R8toXmtxxg pic.twitter.com/ruvyCyltd4
— Jukan (@jukan05) April 17, 2026
As a response to this critical supply situation, customers are now required to prepay distributors to secure access to memory products. This development underscores the escalating costs associated with memory and storage as manufacturers prioritize supply management.
The increased production capabilities of YMTC and CXMT are set to provide significant advantages for the Original Equipment Manufacturer (OEM) market. Current facilities are primarily focusing on higher-margin products, such as High Bandwidth Memory (HBM), at the expense of lower-margin offerings, which are either reduced or discontinued. Consequently, this shift has resulted in extended lead times for production.
One Shenzhen-based server manufacturer indicated that they secured a year’s worth of inventory in January 2026, highlighting that supply assurance has now eclipsed price concerns.
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