Exclusive-Chinese chipmaker YMTC plans new factories amid heightened US-Sino trade tensions, sources say

April 14 (Reuters) - Chinese chipmaker Yangtze Memory Technologies (YMTC) aims to physique 2 much factories successful summation to 1 that volition beryllium completed this year, which volition much than treble its accumulation capableness erstwhile each 3 are up ‌and running, radical acquainted with the plans said.

China has been keen to wean itself from overseas technologies specified arsenic semiconductors - ‌a captious assemblage that the U.S. has sought to bounds Chinese advancements in. This month, a cross-party radical of U.S. politicians projected imposing further restrictions nL6N40M0EZ connected ​exports of chipmaking tools to China.

The 3 caller plants volition each person the capableness to nutrient 100,000 wafers per period erstwhile afloat operational, said 3 sources who were not authorised to talk to media and declined to beryllium identified.

Unlisted YMTC, China's largest shaper of NAND flash representation chips that store information successful smartphones and computers, presently has 2 fabs which tin nutrient a combined 200,000 wafers per month, they added.

Its ‌plans for the 2 caller plants arsenic good ⁠as details astir the mill that is adjacent to completion are being reported by Reuters for the archetypal time.

YMTC, 1 of galore Chinese companies that the U.S. restricts income of goods to, did not respond ⁠to a petition for comment.

STRONGER TIES WITH DOMESTIC SUPPLIERS

YMTC's 3rd factory, which similar its archetypal 2 plants is located successful Wuhan, should commencement operations precocious this twelvemonth and beryllium susceptible of producing 50,000 wafers per period by 2027, according to 2 of the sources.

The gathering has been completed and ​the institution ​is presently installing equipment, they said, adding that much than 50% of ​equipment has been sourced from home companies including captious ‌tools utilized for vertical stacking of spot layers.

YMTC has intensified collaboration with section suppliers specified arsenic Advanced Micro-Fabrication Equipment (AMEC) since the U.S. Commerce Department added YMTC to its Entity List successful December 2022, they said.

AMEC besides did not respond to a petition for comment.

Reuters was not capable to larn people operational dates for the 2 factories being planned oregon wherever they mightiness beryllium located.

RAPID PROGRESS IN TECHNICAL KNOW-HOW

Founded successful 2016 successful Wuhan with beardown backing from section authorities and large state-backed spot concern funds, YMTC has made comparatively speedy ‌strides successful know-how, and analysts accidental its latest Xtacking 4.0 architecture is connected ​par with products from assemblage leaders similar Samsung Electronics.

Although astir of its income ​are successful China, YMTC accounted for 11.8% of the planetary ​NAND flash marketplace past year, according to a UBS report. While Samsung commands 30.4% of the market, ‌YMTC has the aforesaid stock arsenic Sandisk and is ​not excessively acold down SK Hynix, ​Kioxia and Micron which clasp 16%, 15.9% and 13.3% respectively.