Big Chinese manufacturers such as YMTC & CXMT have started what they are referring to as "Epic Expansion" to address memory supply constraints in the DRAM & NAND segments.
YMTC & CXMT Are Leading The Charge in China With "Epic Expansion" Plans To Address Memory & DRAM Shortages
With DRAM & NAND shortages continuing and showing no signs of ending, leading Chinese firms, which include YMTC and CXMT, have taken charge to address supply constraint issues with major expansion plans several billions of dollars.
These plans are part of a major undertaking being referred to as "Epic Expansion," in which the DRAM & NAND manufacturers will try to tackle ongoing memory and storage shortages. It is reported by Chinese outlet Jiemian that YMTC is going all-in and is set to become the 3rd largest storage manufacturer in the world with a global market share exceeding 10% of the global NAND production.
“Yangtze Memory Technologies Co., Ltd.’s revenue in the first quarter of this year exceeded 20 billion yuan, more than doubling year-on-year. Its NAND (flash memory) chip production has exceeded 10% of the global market share, approaching the third largest in the world,” said a core person in the memory chip industry chain. “The profits will be even more explosive in the future.”
The aforementioned source added that, to ensure production capacity, Yangtze Memory Technologies Co., Ltd. (YMTC) will build two more factories this year, in addition to the one new factory already completed. Once all factories are operational, total production capacity will more than double, with each factory potentially reaching a monthly capacity of 100,000 wafers – “a truly epic expansion.” The factory buildings are now complete.
The expansion plans include the construction of two additional factories this year in addition to the one that is already complete. Each production facility will produce roughly 100,000 wafers per month, so 300K wafers per month or more than double their current wafer output.
It is also reported that the expansion will help domestic audiences, bypassing the supply constraints from offshore manufacturers in Japan and the United States. Also, YMTC's and CXMT's reliance on domestic tools & equipment ensures that domestic manufacturers will no longer have to wait for longer verification periods. YMTC will also build diverse production lines in its new plants to ensure reduce their reliance on a singular supply chain.
Customers are also scrambling to gain access to renewed supplies, and the report states that customers are being asked to prepay distributors. After this prepayment, the production will be queued & the customer will be notified to pick up their inventory when it's ready. The reasoning behind this is due to the rising cost of memory and storage.
YMTC & CXMT increasing their production lines will ultimately be beneficial for the OEM market, as current facilities are focusing their production lines on more lucrative products such as HBM, while low-margin products are being throttled or even straight out discontinued. This has led to significant lengthening in the lead times.
One server manufacturer based in Shenzen stated that they have already booked a year's worth of inventory in January 2026, which shows that prices are no longer the concern; it's the supply.
About the author: A Software Engineer by training and a PC enthusiast by passion, Hassan Mujtaba serves as Wccftech's Senior Editor for hardware section. With years of experience in the industry, he specializes in deep-dive technical analysis of next-generation CPU and GPU architectures, motherboards, and cooling solutions. His work involves not only breaking news on upcoming technologies but also extensive hands-on reviews and benchmarking.
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