China’s YMTC Expands Into DRAM Market With Focus on HBM to Ease Domestic AI Shortage
China’s leading NAND flash memory producer, Yangtze Memory Technologies Co. (YMTC), is preparing to enter the DRAM business, with its eyes set on developing in-house high-bandwidth memory (HBM) to tackle the country’s growing shortage of advanced memory for AI chips. The move comes amid soaring demand and tightened U.S. export restrictions on critical semiconductor technologies.
According to a Reuters report, YMTC is establishing dedicated DRAM production lines and investing in 3D stacking technologies essential for HBM manufacturing. The company aims to reduce China’s reliance on depleted HBM stockpiles and create a stable domestic supply chain for the nation’s AI and high-performance computing sectors.
HBM is a specialized form of DRAM used in high-performance GPUs and AI accelerators, critical for training and running large-scale artificial intelligence models. Unlike traditional DRAM, HBM uses through-silicon vias (TSVs) to stack multiple VRAM dies, achieving higher bandwidth and efficiency.
China’s dependence on imported HBM became more pressing after the U.S. expanded export controls in December 2024, limiting Beijing’s access to advanced memory technologies. With AI development accelerating across Chinese tech firms, the lack of a local HBM supply has become a significant bottleneck.
After establishing itself as a key NAND producer, YMTC is now shifting toward DRAM, with a reported facility in Wuhan being prepared for HBM-focused production. While specific output figures are not yet clear, the company is expected to work closely with ChangXin Memory Technologies (CXMT), China’s primary DRAM manufacturer. CXMT will likely provide expertise in 3D stacking while YMTC focuses on packaging and TSV integration.
This collaboration could accelerate China’s timeline to produce HBM locally, a critical step to support companies such as Huawei, which has already revealed efforts to integrate its own HBM process into upcoming AI chipsets.
The global HBM market is projected to see prices rise by as much as 10% in 2025, as demand is expected to double next year. With AI chipmakers like NVIDIA, AMD, and domestic Chinese players requiring unprecedented HBM volumes, any additional supply from YMTC and CXMT could help balance demand, although commercial production may still be years away.
China’s urgency reflects both economic and geopolitical pressures, as ensuring a steady supply of HBM has become just as critical as advancing chip fabrication itself.
Do you think YMTC’s entry into the DRAM market will meaningfully reduce China’s reliance on foreign HBM, or will global restrictions keep the gap wide for years to come?
