China's Storage Industry Advances Through Collaborative Efforts of Three Companies

China's storage industry is evolving through a collaborative model involving three key players: CXMT, YMTC, and XMC. CXMT focuses on DRAM wafers, while YMTC specializes in NAND technology and has recently expanded into DRAM production at its new factory. XMC, a foundry controlled by YMTC, is responsible for the stacking of products from both companies. This division of labor aligns with new regulations from Beijing that require at least half of the equipment for new factories to be sourced domestically, with exceptions only when no domestic alternatives are available.

YMTC's Wuhan Phase III facility is notable as the first advanced storage project to comply with these regulations and is expected to commence production later this year. CXMT currently operates three 300mm DRAM factories, producing approximately 100,000 wafers monthly, with projections to increase output to 350,000 wafers by the end of 2026. If all planned projects are completed, total production could exceed 600,000 wafers.

YMTC's initial two factories in Wuhan have a combined capacity of 200,000 wafers, with Phase III anticipated to contribute an additional 50,000 wafers by 2027, ultimately reaching full production of 100,000 wafers. XMC operates two 12-inch factories, each capable of producing around 30,000 wafers, alongside an HBM packaging line generating about 3,000 wafers per month. Currently, China accounts for approximately 10% of global DRAM production, while YMTC represents 14% of NAND shipments as of the second quarter, with the country consuming about 30% of the world's storage.

CXMT has initiated mass production of DDR5 and LPDDR5 memory types and plans to begin mass production of HBM3 this year, having already provided samples to domestic AI hardware developers. Meanwhile, XMC has dedicated two years to developing HBM packaging using hybrid bonding and YMTC's stacking intellectual property, while continuing to advance through TSV technology.

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Source: KLEA News