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Saturday, January 28, 2023

The United States Will Force YMTC To Leave The Memory Market

It seems like Chinese memory industry will be in dangerand the hero is none other YMTC facing a possible veto from the Commerce Department from the United States, Specifically, DRAM-focused market analyst Trendforce says the Chinese memory maker is at risk of being driven out of the market for 3D NAND flash memory chips. before the year 2024,

The reason for this is none other than its formal inclusion in the United States Department of Commerce’s list of entities on December 15th. From this moment on, the Department of Commerce will review and approve individual transactions related to Export, re-export and sale of equipment, technologies and other goods The United States belongs to the YMTC.

Procurement of equipment parts and technical support from its American partners is going to be very difficult and long, YMTC it would be severely limited To increase your bit output. Therefore, its position in the 3D NAND Flash products market is expected to Weak for longer.

From expectation of big growth to ending in negative

In short, YMTCWithout support from major vendors for the equipment needed to produce the memory, it faces a major technical hurdle in developing its latest 3D NAND flash technology, known as Xtacking 3.0. This memory with the architecture owned by the Chinese company represents 50% performance improvement reduce energy consumption from 25% Compared to the memory of their previous generation.

Considering this latest escalation in the US-China trade dispute, TrendForce and corrected below Their forecasts for the YMTC supply bit growth rate and the total NAND flash supply bit growth rate for the coming year. Initially, it was envisioned that the YMTC would supply bits Will grow 60% year-on-year in 2023, However, it had a steep fall which pushed up its growth rate. in only 18%, Now, hope to record YMTC 7% decline year-on-year,

Looking at forecasts, YMTC customers flying: including customers from the United States

Ymtc Ssd Pcie 4.0

Interestingly, a few months ago the YMTC lost one of its most important contracts: working for Apple. Notably, all Apple mobile devices, iPad and iPhone, were going to integrate YTMC NAND memory in the Asian market. The deal was broken due to US sanctions.

On the other hand, it has been indicated that an unknown computer OEM manufacturer was going to use YMTC memory to power the SSDs of its devices, but it is indicated that all agreements have been temporarily put on hold, To see that the US come into force. Because of all this, TrendForce believes that there is a possibility that YMTC be limited to operating only in mainland China in future.

Furthermore, as the Chinese memory maker is severely hampered in its efforts to move to higher-layer 3D NAND technologies, it will lose opportunities to capture more market share through capacity expansion activities. it also means less competition in the marketWhich always translates into the classic agreement between the main companies to avoid undercutting the prices.

After being added to the Entity List, YMTC could be prevented from receiving further critical equipment if the US government chooses to expand the scope of its export control regulations. For example, it is likelyDutch and Japanese equipment suppliers Join the US sanctions regime and stop selling DUV immersion lithography systems to Chinese customers. This will halt the company’s growth in the NAND memory business.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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