China's YMTC is expanding its NAND production capabilities and aiming to compete with Samsung and SK Hynix in a highly profitable market.

YMTC Plans to Speed Up Its Biggest-Ever Project, the Wuhan Fab, Ultimately Adding a Difference to the Global NAND Output

YMTC is known as one of the 'underdogs' in the NAND industry, mainly because, prior to US export controls in 2022, the company had been collaborating with the likes of Apple and was a major entity in China. While restrictions did hinder the company's business, YMTC is consistently pursuing NAND advancements, and now, according to the Korean media outlet ChosunBiz, it is pushing NAND fab development in an "unprecedented" manner, with the company's Wuhan plant now moving towards mass production by H2 2026.

The NAND business has been massively growing in recent days, with companies like SanDisk, Kioxia, Western Digital, and many others seeing their revenues go through the roof. One of the bigger reasons why the interest around NAND has been much more prominent in recent times is that the "storage" is turning out to be a major bottleneck in the AI supply chain, especially with the announcement of NVIDIA's ICMS platform, which focuses on providing a long-context storage medium for GPUs to access through Bluefield-4.

It seems like YMTC's pursuit of its Wuhan fab is determined to capitalize on NAND demand, specifically to address competition from the likes of Samsung and SK hynix. The Wuhan project is known to be the company's largest, with total spending of $3 billion, and through it, the Chinese NAND manufacturer plans to account for 15% of total NAND output. It is claimed that, through its "Xtacking" technology, YMTC has scaled up to 270-layer 3D NAND, bringing it close to what global manufacturers are currently producing.

With NAND shortages becoming acute, YMTC appears to be accelerating its Wuhan project and ultimately adding more capacity, but the interesting question is whether the company's TAM is sufficient to capitalize on the industry. Currently, the Chinese firm is on the U.S. Entity List, which bars it from some of the world's biggest NAND buyers, but yet again, the supply chain is in desperate need of new capacity to come on board.

Signing off 

@Rahul S

( Best of 2025 )

@iQOO Connect