Market
YMTC reportedly targets at least 60% and up to 70% domestic equipment for its planned fourth Wuhan fab
Reuters, citing two sources, says YMTC wants 60% to 70% Chinese-made equipment for a planned fourth Wuhan fab. It is a target; no orders are placed.
This is a target, not a result. Reuters reported on November 6, 2026, citing two people familiar with the matter, that China's largest flash-memory maker, Yangtze Memory Technologies (YMTC), plans to source as much as 70% of the equipment for a planned fourth factory in Wuhan from domestic suppliers. The floor is at least 60%, with 70% an ambition. The factory has not been built, and only preliminary supplier talks have taken place.
The essentials
- Target: at least 60% domestic equipment, with an ambition of 70%, for the fourth fab.
- Comparison: the third fab, due to start operating later this year, gets just over half of its equipment from Chinese suppliers.
- The plant: expected to make YMTC's most advanced NAND, with more than 300 stacked layers, mainly for data centers and AI storage. Construction is expected to begin next year.
- Status: discussions with suppliers are at an early stage and there are no confirmed orders, per World Today News.
What would be bought locally, and what not?
MLQ's summary of the Reuters report says most added domestic orders are expected in cleaning, polishing and etching, where Chinese tools are already proven on YMTC's lines, and names Naura Technology Group and Advanced Micro-Fabrication Equipment as possible beneficiaries. Relays of the Reuters report add that YMTC remains reliant on overseas suppliers for some sophisticated equipment, including lithography and inspection tools.
How big is the expansion?
Reuters says the third, fourth and fifth factories are each expected to process about 100,000 silicon wafers a month when fully operational, and together would more than double YMTC's capacity. In April Reuters reported YMTC planned two more Wuhan factories, for five in total. The Standard links the localization push to US restrictions.
What is not established
- Whether YMTC will reach 60% or 70%: it is a target and the plant is not built.
- Which suppliers will win orders and in what amounts: no confirmed orders.
- Whether lithography and inspection tools can be sourced domestically: not shown.
- The build timeline and the fifth fab: reported plans, not confirmed.
Summary table
| Point | What is stated as of November 6, 2026 | Source |
|---|---|---|
| Target | At least 60%, ambition of 70% domestic equipment | Reuters via Devdiscourse |
| Third fab | Just over half Chinese equipment; starts later this year | Reuters via Devdiscourse |
| Fourth fab | More than 300-layer NAND for data centers and AI; construction next year | Reuters, TradersUnion |
| Capacity | Third, fourth and fifth fabs about 100,000 wafers a month each | Reuters via Devdiscourse |
| Status | Early supplier talks; no confirmed orders | World Today News |
FAQ
Does YMTC already use 70% Chinese equipment?
No. 70% is an ambition for a fab that is not yet built. The third fab uses just over half.
Is the fourth fab confirmed?
It is a planned factory reported by Reuters from two anonymous sources. Construction is expected to begin next year.
Which Chinese toolmakers could gain?
Reports name Naura and AMEC, mainly in cleaning, polishing and etching. No orders are confirmed.
Method and limits
Sources checked on November 6, 2026. The report rests on two unnamed sources relayed by outlets; we did not read the Reuters original in full. YMTC's comment was not found. This is not investment advice.
Sources
- Devdiscourse (Reuters): EXCLUSIVE-China's top flash memory chipmaker targets more homegrown tools for new factory, sources say (verified 2026-11-06)
- TradersUnion: YMTC targets higher use of domestic chip tools for new Wuhan factory (verified 2026-11-06)
- MLQ.ai: YMTC targets up to 70% Chinese-made equipment for its fourth NAND fab, Reuters reports (verified 2026-11-06)
- World Today News: YMTC Targets Up To 70% Domestic Equipment For New Chip Plant (verified 2026-11-06)
- FourWeekMBA: YMTC Tops Samsung in China NAND, Said to Eye 70% Local Tools (verified 2026-11-06)
- Tom's Hardware: China's premiere memory-maker YMTC plans two additional Wuhan fabs using homegrown chipmaking tools (verified 2026-11-06)
Spotted an error in this article? Report it · Our corrections policy
