YMTC's Fourth Fab Targets 70% Domestic Equipment, Surpassing Third Fab Levels
nashnova research
YMTC plans a fourth factory in Wuhan with a domestic-equipment target of 70%, up from just over half at its third fab, focused on 300+ layer advanced NAND; the move marks China's top memory chipmaker pushing equipment self-sufficiency from aspiration to production-scale proof.
What will the fourth fab actually do?
Located at YMTC's Wuhan headquarters, the plant is expected to break ground next year and produce 300+ layer advanced NAND chips.
Output will target data-center and AI storage — the fastest-growing segment in global flash memory.
YMTC has only held preliminary talks with suppliers; no formal orders have been placed yet.
Why does the domestic-equipment ratio matter?
The third fab just crossed 50% domestic equipment; the fourth targets 60% minimum, 70% goal.
This means → YMTC is not simply buying a few more local machines — it aims to switch suppliers across core production steps.
New domestic orders focus on cleaning, polishing, and etching — equipment already validated on YMTC's existing lines.
Which companies stand to benefit most?
NAURA Technology (北方华创) and AMEC (中微公司) were named by sources as potential beneficiaries.
In plain terms = the vendors whose tools already run on YMTC's lines are first in line for orders.
However, lithography, inspection, and other high-end processes still rely on foreign suppliers — domestic substitution does not yet cover the full chain.
What role have U.S. sanctions played?
In December 2022, the U.S. placed YMTC on its Entity List, restricting American suppliers from selling certain technology.
This reflects a pattern: sanctions acted not as a brake but as an accelerator for domestic sourcing — the tighter the chokepoint, the stronger the push to replace.
Samsung and SK Hynix face the same constraint: their China fabs require annual U.S. approval for expansion, and Washington has signaled it will not approve meaningful capacity or technology upgrades.
Where does YMTC stand in the Chinese market?
Per Omdia data, YMTC's share of the Chinese NAND market rose from 28% in 2025 to 38.5% in Q2 this year, overtaking Samsung for the top spot.
If the fourth fab launches on schedule, its 300+ layer capability will exceed Samsung's Xi'an plant (286 layers) and SK Hynix's Dalian plant (240+ layers) in China.
This means → whether YMTC hits its domestic-equipment targets is not just about one company — it is a litmus test for the maturity of China's semiconductor equipment industry.
市场有风险，内容仅供研究参考，不构成投资建议。