by LIANG Baoxin, LI Jiaqi
China's memory chipmakers are accelerating capacity expansion as tight supply, rising prices and strong AI-driven demand reshape the market.
Industry sources told Jiemian News that Yangtze Memory Technologies Co., Ltd. (YMTC) is rapidly expanding output as large orders flow in. The source said the company's first-quarter revenue exceeded 20 billion yuan, more than doubled from a year earlier, while its NAND flash output has surpassed 10% of global market share, approaching the world's No. 3 position.
To support growth, YMTC has completed construction of a new fab this year and plans to build two more, the source said. Once fully operational, total capacity is expected to more than double, the source said, with single-fab monthly output potentially reaching 100,000 wafers per month.
YMTC did not respond to a request for comment.
At the same time, DRAM maker ChangXin Memory Technologies (CXMT) is also scaling up ahead of a planned IPO. Its prospectus shows revenue of 32.084 billion yuan in the first nine months of 2025, up 97.79% year on year. The company plans to raise 29.5 billion yuan to fund wafer production lines and technology upgrades, with a pre-IPO valuation exceeding 150 billion yuan.
The IPO is currently in a "suspended" status pending updated financial disclosures. Industry sources said the delay is linked to stronger recent performance following a sharp rise in memory prices.
The expansion is feeding through to China's semiconductor supply chain, offering opportunities for equipment and materials suppliers.
A source at a Chinese supplier said overseas companies are struggling to keep pace. "We are being pushed almost daily," the person said, adding that foreign suppliers such as Shin-Etsu Chemical and Entegris face capacity and delivery constraints.
Locally produced wafer carrier products, which saw limited shipments in 2025, are expected to account for more than half of procurement at some clients in 2026, marking a shift toward local supply.
Chinese equipment makers are also gaining ground. Advanced Micro-Fabrication Equipment Inc. China (AMEC) said its etching tools have been adopted by major domestic fabs, with more than 6,800 etching chambers shipped globally by end-2025. Its tungsten CVD equipment for contact hole filling has completed mass-production validation and secured volume orders.
Testing and materials suppliers have also reported strong growth. Jingce Electronic said semiconductor orders, revenue and profit all rose in 2025, while CMP materials supplier Dinglong Co. said its products are now widely used in memory manufacturing processes.
Analysts said the current expansion cycle differs from previous ones as capital, capacity buildout and pricing conditions align.
Memory prices have rebounded sharply since late 2025. TrendForce said in a report that DRAM contract prices are expected to rise 58%–63% quarter on quarter in the second quarter of 2026, while NAND flash prices are expected to rise 70%–75% quarter on quarter.
AI-driven demand, particularly from servers, is absorbing capacity and shifting production toward higher-margin products such as high-bandwidth memory (HBM).
Industry participants said supply has become the key constraint. "Availability matters more than price," one server manufacturer employee said, noting that customers able to secure supply are willing to pay a premium.
Procurement strategies are also shifting, with one major Chinese smartphone maker increasing sourcing from Chinese suppliers and one system equipment company source saying some firms have reached 100% localization of memory chips.
With domestic fabs expanding, overseas suppliers, cautious on new investment, and delivery times tightening, industry insiders said local players now have a clearer path to gain market share.
