Neither the United States nor South Korea expected China's memory chip industry to be on the verge of a major breakthrough!

A South Korean media outlet revealed a piece of news: Yangtze Memory Technologies' (YMTC) Phase III factory in Wuhan will begin mass-producing NAND flash memory this second half of the year. Phases I and II are already operating at full capacity, producing 1.77 million wafers last year and aiming for 2 million this year. Once Phase III starts up, monthly production capacity will surge from 160,000 to 300,000 wafers, pushing total output past SK Hynix and Micron, ranking globally third—behind Japan’s Kioxia and South Korea’s Samsung.

You might not grasp how significant that ranking is. Let me rephrase it: Four years ago, YMTC was placed on the U.S. Entity List; everyone speculated how long it could survive. Four years later, instead of collapsing, it’s now poised to enter the global top three.

When it comes to memory chips, if the technology meets standards, yield rates are reliable, and prices are low, customers will buy—regardless of where you're from. For several years, Samsung, SK Hynix, and Micron have been cutting production to maintain prices. In contrast, YMTC is doing the opposite—expanding production despite market headwinds. While others are contracting, YMTC is expanding; while others prioritize profit, YMTC focuses on capturing market share. This shift in momentum has driven its market share from nearly zero to nearly double digits. After Phase III becomes operational, global market share could reach 13% to 15%. In this trillion-dollar industry, such a figure is enough to keep industry giants awake at night.

According to sources: an overseas smartphone brand is considering adopting YMTC’s flash memory. The industry is speculating it might be Apple. As one of the world’s largest NAND buyers, Apple has extremely stringent quality audits. Passing Apple’s certification would be like obtaining a golden seal of global recognition. Once approved, not only Apple but other international clients will likely follow suit.

Apple has already adopted ChangXin Memory Technologies (part of the same ecosystem as YMTC) for DRAM. Replicating this success in NAND aligns perfectly with Apple’s strategy of diversifying its supply chain. If this happens, YMTC won’t have to compete on price against domestic rivals anymore—it can directly penetrate the global high-end market.

On the global stage of memory chip competition, China finally has a seat at the table—not as a backup player, but as a key contender. The next step? To become the dealer. The road ahead is long, but the direction is right.

Original article: toutiao.com/article/1861433989639307/

Disclaimer: The views expressed in this article are solely those of the author.