China's 3D NAND leader YMTC gradually switching to homegrown chipmaking tools

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(Image credit: YMTC)

When the U.S. banned the sale of advanced chipmaking tools to Chinese entities in October 2022, China's 3D NAND champ YMTC suffered significantly as it could not get tools it had already paid for. But almost two years later, YMTC is making steady progress in replacing foreign chipmaking tools with domestically developed alternatives, according to Bloomberg which cites TechInsights

YMTC has turned to domestic suppliers like Advanced Micro-Fabrication Equipment (AMEC), which specializes in etching equipment; Naura Technology, which focuses on deposition and etching tools; and Piotech, another deposition specialist, for chipmaking equipment. While the company continues to rely on foreign suppliers like ASML and Lam Research for key tools, these Chinese companies are increasingly shouldering a larger part of the production flow, according to TechInsights

While AMEC, Naura, and Piotech are making steady progress with more sophisticated fab tools, slowly closing the gap with leading U.S. companies like Applied Materials and Lam Research, their advancements are less seen by the general public, largely because neither they nor their clients are interested in showing their progress to the outside world in general and the U.S. in particular. 

But while YMTC is adopting more domestic equipment — particularly because Chinese companies are very keen on producing competitive etching and deposition tools — the country's semiconductor industry, in general, continues to rely on foreign tools, such as those from ASML, Applied Materials, KLA, Lam Research, and Tokyo Electron. 

In the first half of 2024, China became the top spender on semiconductor-making equipment as Tianxia-based chip producers invested $25 billion in new tools. This surpassed the combined investments of South Korea, Taiwan, and the U.S., highlighting China’s push to localize chip production amid fears of Western trade restrictions. By the end of 2024, China's total spending on semiconductor equipment is projected to reach $50 billion, reflecting confidence in future market demand and the industry's growth.

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • zsydeepsky
    and Iseral's recent pager operation opened a whole new market for them, whereas the performance is not the major concern, but "out-of-Mossad-touch" is.
    Reply