The trade war between China and the US continues at full speed. The technology sector, as always, is the one most affected by the tensions between the two countries. The US government bans the sale of high value-added technology products to some Chinese companies due to security concerns, while the Asian country retaliates with difficulties in supplying critical raw materials. However, both countries are not solely focusing on aggressive tactics.

For instance, US companies are seeking alternative raw materials for batteries and other technologies, while Chinese companies strive to develop the technologies that are not being sold to them. Recently, China’s leading memory chip manufacturer, YMTC, has made advancements in producing advanced 3D NAND products using locally sourced equipment. Here are the details…

China’s YMTC Advancing Self-Sufficiency in 3D NAND Flash Chip Production with Local Equipment

According to the latest reports, China’s leading memory chip maker, Yangtze Memory Technologies Corp (YMTC), is reportedly making progress in producing advanced 3D NAND flash chip products using only domestically sourced equipment. The top-secret project, named Wudangshan, has placed significant orders with Chinese suppliers such as Naura Technology Group. YMTC’s aim is to help China become self-sufficient in semiconductor production, which has been hindered by restrictions on the export of advanced chip-making tools by the US, citing concerns about technology falling into the hands of the Chinese military.

However, the “choke points” in China’s chip manufacturing supply chain, where domestic alternatives are not yet available, remain a challenge for YMTC. These include metrology tools from US equipment maker KLA and lithography systems from Dutch company ASML and Japanese vendors Nikon and Canon. Despite the challenges, YMTC has received fresh funding from state-backed investors, including the “Big Fund”, which is positive news for the company after being placed on a US trade blacklist last year.

If successful, the Wudangshan project would be a breakthrough for China’s semiconductor industry, as it could help the country compete with other advanced chip manufacturers like Samsung. However, it remains to be seen how YMTC will overcome the choke points in its chip manufacturing supply chain.

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