Yangtze Memory Technologies Co., Ltd. (YMTC), China's leading NAND flash manufacturer, is set to begin trial production on its first semiconductor production line using entirely domestically sourced equipment in the second half of 2025. This move marks a major milestone in China's push toward semiconductor self-sufficiency amid ongoing U.S. export restrictions.

After being added to the U.S. Entity List in late 2022, YMTC has been unable to procure cutting-edge equipment from suppliers like ASML and Applied Materials. However, the company has continued to scale rapidly. According to industry sources cited by Tom's Hardware, YMTC plans to ramp up production capacity to 130,000 wafers per month by the end of 2024 and reach 150,000 wafers in 2025—equivalent to approximately 8% of global NAND flash supply. Its long-term goal is to capture 15% of the global market by the end of 2026.

At the heart of YMTC's growth is its fifth-generation 3D TLC NAND product, the X4-9070, featuring a 294-layer stacked structure and 3,600 MT/s interface speed. Despite the equipment restrictions, YMTC is pushing forward with domestic alternatives and in-house innovation to support aggressive bit growth targets well above the market average of 10–15%.

The company's all-domestic production line, designed to bypass U.S. export controls on equipment used in producing NAND chips with over 128 layers, represents a strategic effort to reduce foreign dependency. Industry analysts note that if trial production proves successful, YMTC will be one step closer to achieving 100% localization in NAND production—a development that could shift the global pricing power of NAND flash, especially if monthly capacity expands to 200,000 wafers.

Product development continues at pace. In addition to the 1TB X4-9070 now in volume production, YMTC is set to release the 3D QLC X4-6080 later in 2025, potentially maintaining a 294-layer design. By 2026, the roadmap includes 2TB TLC and QLC chips (X5-9080 and X5-6080), featuring interface speeds up to 4,800 MT/s. The next-generation architecture is expected to exceed 300 layers, enabling higher bit density per wafer, even as throughput per tool declines.

Domestically, YMTC is also making strong gains. The company is projected to capture over 30% of China's NAND market this year. This growing local dominance underscores the market's increasing confidence in domestically produced memory solutions.

YMTC has leveraged key differences between logic and memory chip processes to advance in etching and deposition using Chinese tools. These developments are not only reducing reliance on foreign suppliers but also improving production efficiency and chip quality.

Despite ongoing limitations in extreme ultraviolet (EUV) lithography and advanced metrology, YMTC's new “Xtacking 4.0” chip architecture is reportedly competitive with international leaders in terms of performance. Continued progress will depend on closing the remaining technology and equipment gaps.

If successful, YMTC's fully localized production line could serve as a blueprint for China's broader chipmaking ambitions—transforming the company from a fast follower into a rule-maker in the global NAND flash industry.