China’s YMTC Advances Toward IPO After CXMT Debut, Raising Stakes for Samsung and SK Hynix

China broadens its memory-chip push

YMTC follows DRAM maker CXMT with IPO bid

Listing expected in the first half of 2027

Yangtze Memory Technologies Co. is in the final stages of preparing for an initial public offering. After DRAM maker ChangXin Memory Technologies completed a record-setting IPO, YMTC’s push toward a listing underscores China’s effort to build self-reliance across the memory market, spanning both DRAM and NAND. The expansion of the two Chinese chipmakers is emerging as a new factor in the global memory market dominated by Samsung Electronics Co. and SK Hynix Inc.

Bloomberg reported on Aug. 19 that YMTC had completed China’s pre-listing tutoring process for a domestic share sale. Before filing for an IPO, Chinese companies must work with a securities firm to review whether their corporate governance, accounting and internal controls meet listing requirements. A report posted on the website of the China Securities Regulatory Commission showed YMTC had put in place the governance structure, accounting foundation and internal control systems required of a listed company.

Founded in 2016, YMTC produces 3D NAND flash used in solid-state drives, smartphones, PCs and data-center storage devices. Unlike fabless companies that handle design only, YMTC operates as an integrated device manufacturer, covering chip design, wafer fabrication, packaging and testing.

YMTC’s main competitive strength is widely seen as Xtacking, its in-house architecture based on hybrid bonding. The technology manufactures the memory cells that store data and the control circuits separately, then bonds them together. Rather than building the chip in a single process, it splits production by function and assembles the parts later to boost performance. Data-transfer speeds have risen from roughly 800 MT/s in the early version to 3,600 MT/s in the latest Xtacking 4.0. Storage capacity has expanded from 512 gigabytes to as much as 2 terabytes.

More recently, YMTC secured 270-layer stacking technology, allowing it to store more data on a smaller chip. The company has been rapidly expanding its presence in the global NAND flash market and closing the gap with Samsung Electronics and SK Hynix, backed by its technology.

YMTC is also gaining market share. Counterpoint Research said YMTC accounted for 14% of the global NAND flash market in the second quarter, overtaking Japan’s Kioxia Holdings Corp. to rank third worldwide. Samsung Electronics held 25%, while SK Hynix had 22%. It was the first time YMTC entered the top three global NAND suppliers by shipments.

YMTC’s move follows the earlier success of DRAM maker CXMT. CXMT raised 66.6 billion yuan, or about $9.3 billion, in an IPO at the end of July, marking the second-largest listing ever in mainland China. A surge in the stock after trading began pushed the company past Tencent Holdings Ltd. to become China’s most valuable listed company.

Both companies have become central to Beijing’s strategic priorities as AI-driven demand fuels a global memory shortage and lifts profits across the industry. U.S. curbs on chip exports to China have only increased their strategic importance, Bloomberg reported. That has encouraged investor bets on China’s semiconductor supply chain and driven sharp gains in related shares.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com