Major Chinese memory makers are ramping up production in a big way as the global DRAM and NAND shortage drags on with no clear end in sight. Companies like YMTC and CXMT have launched what’s being described as an “Epic Expansion,” a multi–billion-dollar push designed to relieve supply constraints across key memory and storage segments.
At the center of this expansion is YMTC, which is reportedly accelerating its growth plans to become one of the world’s largest NAND flash suppliers. Industry sources quoted by Chinese outlet Jiemian claim YMTC’s momentum has surged this year, with first-quarter revenue said to have exceeded 20 billion yuan, more than doubling compared to the same period last year. More notably for the wider tech industry, YMTC’s NAND output is reported to have climbed past 10% of global market share, putting it within reach of becoming the third-largest NAND manufacturer worldwide.
To sustain that kind of growth, YMTC is said to be dramatically scaling its manufacturing footprint. Reports indicate the company plans to add two more factories this year on top of a new facility that has already been completed. If these plants come online as expected, YMTC’s total production capacity could more than double. The reported target is around 100,000 wafers per month per factory, implying a combined monthly capacity of roughly 300,000 wafers once all three facilities are fully operational.
The expansion isn’t just about volume—it’s also about resilience. The report suggests these new efforts are intended to reduce dependence on overseas supply chains, particularly at a time when constraints and bottlenecks have affected access to memory and storage components. YMTC and CXMT are also highlighted as leaning more heavily on domestic tools and equipment, which could shorten device verification timelines and reduce delays that can occur when relying on imported manufacturing systems. YMTC is additionally expected to diversify production lines in its newer plants, a move aimed at lowering reliance on any single supply chain path.
The demand environment remains intense. The shortage has reportedly become so severe that customers seeking memory supply from CXMT or YMTC may be required to prepay channel distributors to secure allocation. After prepayment, orders are queued, and buyers are notified when inventory is ready for pickup. The underlying driver is simple: prices for memory and storage have been climbing, and securing supply has become a priority.
This matters far beyond memory makers. Expanding DRAM and NAND output could provide welcome relief for OEMs and system builders facing extended lead times. With many existing facilities prioritizing higher-margin products like HBM, production of lower-margin memory products has reportedly been reduced or even discontinued in some cases—tightening supply further and stretching delivery timelines.
One example underscores just how supply-constrained the market has become: a server manufacturer in Shenzhen reportedly booked an entire year’s worth of inventory back in January 2026. It’s a sign that for many buyers, pricing isn’t the main concern anymore—access and availability are.
If YMTC and CXMT can execute on these large-scale capacity increases, the “Epic Expansion” could become a meaningful factor in easing memory shortages and stabilizing supply for everything from servers and PCs to consumer electronics that depend on steady DRAM and NAND availability.
