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Jukan
China's CXMT and YMTC to massively expand memory output amid global crunch

- According to reporting by Nikkei Asia, China’s two major memory manufacturers view the global supply shortage as an opportunity for “emerging players” to catch up and are embarking on record-level aggressive capacity expansions. The increased production volume is highly likely to be used primarily to meet domestic demand within China.

- ChangXin Memory Technologies (CXMT), China’s largest DRAM maker, is currently expanding its Shanghai plant. Upon completion, its total production capacity is expected to be two to three times larger than that of its Hefei facility. The plant will produce DRAM for servers, PCs, and automobiles. Equipment move-in is reported to be around the second half of 2026, with mass production starting in 2027. Additionally, an expansion of HBM production lines is underway in Shanghai.

- Wuhan-based NAND manufacturer Yangtze Memory Technologies (YMTC) is constructing its third plant in Wuhan, targeting a production start in 2027. The company plans to allocate 50% of the new plant’s capacity to DRAM and is reportedly discussing cooperation with domestic packaging firms for HBM. Furthermore, according to official statements, they have found ways to produce using less advanced equipment, partially bypassing export controls, and there are even claims that they have finalized their own proprietary DRAM development.

- While YMTC previously had the possibility of supplying Apple, it faced setbacks after being added to the U.S. Entity List in 2022. Since then, it has regained growth momentum driven by China’s localization policies and favorable market conditions.

- According to Yole Group estimates, CXMT is the world’s fourth-largest DRAM maker following Samsung Electronics, SK Hynix, and Micron (with a market share of approximately 11.1% based on production capacity), which could expand to about 13.9% by 2027. The report also mentions that CXMT has secured major tech customers such as Alibaba Cloud and references documents from China International Capital Corporation (CICC).

- CXMT is pushing for a transition to DDR5-grade technology beyond DDR4/LPDDR4 and aims to support domestic HBM demand in China. The company is reported to be targeting a 29.5 billion yuan (approx. $4.25 billion) raise through an IPO on the Shanghai Stock Exchange.

- Estimates also suggest that YMTC’s NAND market share could expand from about 12% in 2025 to 15% by 2028. Gary Huang assessed that “the supply shortage favored emerging players, and the combination of financial conditions, localization, and government support is promoting the adoption of alternative supply sources.”



Here it comes. https://t.co/VQazHOHodp

- Jukan
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