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China’s biggest flash memory chipmaker is running a high-stakes experiment in self-reliance. Yangtze Memory Technologies Co, better known as YMTC, plans to source as much as 70% of the equipment for its planned fourth factory from domestic suppliers. Reuters reported the plan, citing two people familiar with the matter.
The floor is at least 60%, with 70% as the stretch goal.
From half to most
The new target is a clear step up from YMTC’s third fab. Just over half of the equipment in that facility is Chinese-made.
That third plant, known as Phase 3, is the first major Chinese memory fab to clear the 50% domestic tooling threshold. Key suppliers there include AMEC, Naura and Piotech.
The fourth fab is expected to break ground next year in Wuhan, where YMTC is headquartered.
The scale of what YMTC is building matters too. The company already runs two fabs with a combined capacity of approximately 200,000 wafers per month. Its new plants could push output well beyond that level, potentially doubling it.
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Phase 3 is expected to begin operations by late 2026. The ramp plan calls for 50,000 wafers per month by 2027, eventually climbing to a full capacity of 100,000 wafers per month. YMTC is also weighing two additional fabs with similar production goals.
Why Beijing cares about chip tools
YMTC has become a real force in that market. The company ranked No. 3 globally in NAND bit shipments in Q2 2026, holding a 14% market share.
The money side has been less smooth. YMTC’s parent, CCSH, has paused its planned IPO of approximately CNY 33 billion ($4.9 billion), citing market volatility and regulatory caution.
What this means
For China’s chip equipment makers, the YMTC target reads like a demand signal. A fourth fab sourcing at least 60% of its tools locally implies a substantial order book for companies like AMEC, Naura and Piotech.
For the global NAND market, the bigger question is capacity. If YMTC’s new plants roughly double output beyond its current approximately 200,000 wafers per month, that is a lot of additional storage chips entering the market.
Financing is the other variable to watch. With the CCSH listing on hold, the pace of YMTC’s expansion may depend on how quickly market conditions and regulatory signals improve. The timing of the fourth fab’s groundbreaking next year, and whether the two additional fabs move from consideration to construction, will show how much of this plan survives contact with the capital markets.
