YMTC Targets 70% Domestic Equipment for New Semiconductor Plant
The Chosun Ilbo · Jeong Du-yong(ChosunBiz) ·
YMTC Targets 70% Domestic Equipment for New Semiconductor Plant Amid U.S. export controls, YMTC pushes domestic equipment despite funding uncertainty from suspended IPO
YMTC, the largest NAND flash manufacturer in China, is pursuing a plan to source up to 70% of the manufacturing equipment for its new semiconductor plant from Chinese suppliers. This move aims to expand advanced NAND production capabilities using domestic equipment amid U.S. export controls on semiconductor manufacturing technology. However, securing funds for expansion has become uncertain after the suspension of its initial public offering (IPO) process, which was valued at approximately 7 trillion Korean won.
On November 6, Reuters reported, citing 2 people familiar with the matter, that YMTC is pushing to increase the proportion of domestically sourced semiconductor manufacturing equipment for its fourth factory, scheduled to be built in Wuhan, Hubei Province, to at least 60% and up to 70%.
This exceeds the level of its third factory in Wuhan, which is set to begin operations by the end of this year. The third factory reportedly uses Chinese-sourced equipment at slightly over 50%. The new factory aims to reduce reliance on overseas semiconductor equipment suppliers and counter U.S. export restrictions by increasing dependence on domestic equipment.
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