Yangtze Memory Technologies (YMTC), China's largest NAND flash memory manufacturer, has begun connecting the production equipment at its third wafer fab (FAB3) in Wuhan. With preparations for production entering their final stages, the fab is expected to begin initial operations by the end of this year.
According to a procurement platform, China Electronics System Engineering Second Construction Co., Ltd. (CESI), a state-owned engineering contractor under China Electronics Corporation (CEC), recently began selecting a construction contractor for the "Gas Section 3" of the "Wuhan Yangtze Memory FAB3 Secondary Piping A Area B Package Process Equipment Piping EPC Project." This project involves secondary piping construction, which further connects the existing utility supply network within the wafer fab, including gas and water, to individual production equipment.
This means that YMTC is finalizing the operational conditions for its already installed production equipment. The tender also requires bidding companies to have experience with projects related to YMTC, domestic DRAM manufacturer Changxin Memory Technologies, or have construction experience with 12-inch wafer fabs of similar scale.
Industry insiders say, "Yangtze Memory's capacity expansion is unlikely to immediately lead to an oversupply in the NAND market in the short term. However, relying on the continued expansion of production and market share in the Chinese domestic market, it may become an increasingly obvious competitive pressure for existing NAND manufacturers in the medium to long term."
