Yangtze Memory Technologies Corp (YMTC), one of China’s prominent semiconductor memory manufacturers, has recently addressed swirling rumors about a possible “backdoor listing.” On December 9, 2024, YMTC stepped into the spotlight with a rare public declaration to deny any such plans or associations with All Ring Tech, another enterprise based out of Hubei.
Having been founded in 2016, YMTC stands strong with a hefty registered capital of CNY111.812 billion, which translates to about US$24.96 billion. The company is backed by substantial stakeholders, including Hubei Changsheng Development owning 26.89%, Wuhan Xinfly Technology with 25.69%, and the China National Integrated Circuit Industry Investment Funds holding 12.13% and 11.53% in its two phases.
As speculation brewed about YMTC’s alleged maneuver to sidestep traditional public offerings due to its investor Unisplendour Corp.’s bankruptcy, insiders gauged that a straightforward initial public offering (IPO) by YMTC could potentially stir up market unease, given its estimated valuation exceeding CNY100 billion or US$22.36 billion. Firmly squashing the hearsay, YMTC highlighted that it has no ties with All Ring Tech and is prepared to defend its stance legally against the perpetrators of these misleading rumors.
In tandem with these developments, attention also shifts to YMTC’s subsidiary, Wuhan Xinxin Semiconductor. As a lead player in China’s NOR Flash manufacturing, Xinxin is not only forging ahead with its own IPO plans but is also aiming to amass CNY4.8 billion, approximately US$1.07 billion. This move focuses on expanding their 12-inch production capabilities and refining specialized technological innovations. Despite facing certain industry-wide challenges reflected in lowered gross profit margins, the subsidiary’s steady revenue growth hints at its robust engagement in navigating the semiconductor dominion.
