Yangtze Memory Technologies/Changxin Memory Technologies to expand production, highlighting the importance of storage vendors in mainland China

Supply chain sources pointed out that as the process yield of Yangtze Memory and Changxin Memory increases, their production capacity will gradually expand this year. At the same time, the importance of storage manufacturers in mainland China will gradually become apparent as early as the end of 2021 to 2022, and will have an impact on the overall supply and demand of the industry.

Digitimes reported that the market had previously reported that Yangtze Memory planned to double its monthly output of memory chips to 100,000 wafers by the second half of this year, accounting for about 7% of the global total output. However, Yangtze Memory later denied the rumor, saying that the specific details of the next construction plan would be subject to official channels.

The industry said that whether Yangtze Memory can successfully enter the "first echelon" of global NAND Flash will depend on whether the mass production of 128-layer NAND in the second half of the year is smooth. If the yield rate can be improved as expected, Yangtze Memory can invest more resources to expand production capacity.

In addition, sources from the Taiwanese supply chain said that upstream DRAM wafer production capacity is in short supply, and some storage IC design manufacturers have begun to turn to DRAM factories in mainland China, including using old machines and production lines from Fujian Jinhua, and Changxin Memory is also expected to open foundry services to provide customers with self-design.

Changxin Storage declined to comment on the above rumors, and its current mass-produced products are still mainly DDR4. According to the company's plan, by the end of 2020, the 12-inch storage wafer project has reached the expected monthly production capacity of 40,000 pieces, and has started to start production of 60,000 pieces. After entering the stage of mass production and sales in 2021, the production capacity is expected to increase to 120,000 pieces in 2022.