Table of Contents

• You might want to know


• Main Topic


• Key Insights Table


• Afterwards...

You might want to know

Which Chinese manufacturer recently rose to third place globally in NAND memory-chip shipments, surpassing some established rivals?

What might this ranking change imply for market shares, revenue mix, and future investments across the memory industry?

Main Topic

Yangtze Memory Technologies Company (YMTC), a Chinese memory-chip producer, has made a notable advance in the NAND flash segment, according to data from Counterpoint Research. In the second quarter, YMTC achieved third place worldwide by shipments within the NAND market, trailing only behind South Korea’s Samsung and SK hynix. This placement represents a significant milestone because it put YMTC ahead of established competitors such as the U.S.-based Micron and Japan’s Kioxia in shipments for that quarter.

NAND flash is a type of non-volatile memory that retains stored data when power is removed; it is a foundational component in consumer devices such as smartphones, flash drives, and solid-state drives. Unlike DRAM, which is faster and typically used in volatile memory applications like system memory, NAND generally offers higher density at lower cost but with slower access speeds. For some companies, the revenue mix between NAND and DRAM can be decisive: for example, NAND accounts for roughly one-quarter of Micron’s revenue, while DRAM comprises the majority.

The Counterpoint report attributed a 14% global shipment share to YMTC in the second quarter. That figure reflected a narrow lead over Kioxia compared with twelve months earlier when YMTC briefly exceeded Kioxia’s shipments before subsequently falling behind during later months. According to Counterpoint Research Director MS Hwang, projections show YMTC is likely to extend its lead further into 2027 and 2028. Hwang also emphasized an industry rule of thumb: a memory manufacturer generally needs at least a 15% market share to sustainably fund its own capital expenditures and support long-term expansion plans.

YMTC’s rising shipment volume has coincided with broader activity in China’s memory sector. YMTC is preparing to list on mainland China’s stock market, a move that follows the high-profile market entry of CXMT, a Chinese firm focused on DRAM, which debuted successfully last month. CXMT captured around 7% of the DRAM market in the second quarter, ranking fourth behind the established vendors Micron, SK hynix, and Samsung, per Counterpoint data.

Marketwide, both DRAM and NAND segments experienced strong demand that pushed sales to record levels earlier in the year. Counterpoint reported near-record quarterly sales of almost $100 billion for DRAM and about $46 billion for NAND in the first quarter. Despite YMTC’s gains in shipment volume, Counterpoint noted that the company still trails Micron and Kioxia in NAND revenue. One reason is sales mix: YMTC currently sells a larger proportion of its NAND products into consumer applications rather than into higher-value data-center channels. Analysts expect data-center demand to take up roughly half of available NAND capacity by the end of 2026, which would materially affect vendor revenue distribution.

In response to shifting demand and competitive pressure, other major vendors are adjusting investments. For example, SK hynix has resumed capital expenditure at its Dalian, China facility after a four-year pause, according to Korean media reports. This step signals an intent to increase NAND output in China. Public statements from SK hynix to international media outlets were not immediately available at the time of reporting.

Taken together, YMTC’s ascent in shipment rankings highlights several broader dynamics: intensifying competition among global memory vendors, strategic shifts in production footprints and capital investment, and an evolving end-market mix that will determine future revenue outcomes. While shipments are an important metric for gauging scale and manufacturing throughput, revenue, product mix (consumer versus data center), and capital spending capacity all shape a vendor’s long-term competitive position.

Key Insights Table

Afterwards...

Looking ahead, several technology and strategic areas deserve continued attention. First, the shift of NAND demand toward data-center applications will reward vendors that can deliver high-density, high-reliability products tailored to enterprise storage. Continued advancements in NAND cell structure, error-correction, and controller technology will be decisive.

Second, capital intensity remains a defining characteristic of memory markets. Companies that secure cost-efficient manufacturing scale and reliable supply chains will be better positioned to compete. As such, close observation of factory investments, regional production strategies, and technology node transitions is important for forecasting vendor trajectories.

Third, the interplay between geopolitical considerations and supply-chain diversification may shape where investments are made and which customers suppliers can reliably serve. Finally, tracking product mix — consumer versus enterprise/data-center sales — will clarify whether shipment gains translate into sustainable revenue and profit growth. These areas represent the most consequential frontiers for understanding how the memory industry will evolve over the next several years.