China’s YMTC breaks into global top 3 flash-memory suppliers for first time

Chinese semiconductor company Yangtze Memory Technologies Corp (YMTC) has achieved a significant milestone by becoming the world's third largest NAND flash memory supplier by volume for the first time. Located in Wuhan, the firm captured 14% of global NAND bit shipments in the second quarter, narrowly surpassing Japan's Kioxia, according to data from Counterpoint Research.

Samsung Electronics maintained its market lead with a 25% share. SK Hynix, including its Solidigm subsidiary, held the second position at 22%. YMTC's shipments grew 22% year on year and 5% quarter on quarter, boosted by increased supplies to domestic electronics manufacturers and the production of its latest-generation 3D NAND architecture.

However, the company ranks fifth globally in NAND revenue, behind US-based Micron Technology and Kioxia, due to its focus on lower-margin consumer products and a smaller presence in enterprise solid-state drives (eSSDs). The imbalance is worsening as artificial intelligence reshapes storage demand, with eSSDs now accounting for 48% of total global NAND bit shipments, nearly double their 26% share from a year ago.

Counterpoint forecasts server eSSDs will make up more than half of all NAND bits shipped by year-end. YMTC plans to shift its product mix towards eSSDs in the second half of the year to solidify its third-place global standing, supported by expanding capital opportunities. The strategy follows years of US trade restrictions limiting YMTC's access to advanced semiconductor manufacturing equipment.

The company is expanding its manufacturing operations despite these restrictions, with Morgan Stanley estimating a 35,000 wafer per month capacity increase this year and larger increases planned for the next two years. This expansion aligns with Beijing's efforts to localise China's AI infrastructure, driving growing domestic demand for high-bandwidth memory eSSDs.