YMTC and CXMT Take Advantage of the AI Boom to Challenge Samsung and Micron

The race to supply AI infrastructure is no longer just about GPUs, accelerators, and advanced chip factories. It’s also shifting to memory, a less visible component to the general public but crucial for training models, powering data centers, and sustaining AI hardware growth. In this context, two Chinese manufacturers, Yangtze Memory Technologies Corp (YMTC) and ChangXin Memory Technologies (CXMT), are gaining prominence.

According to the latest Jefferies GREED & Fear report cited by Open Magazine, both companies are advancing their plans to go public amidst strong investor interest in anything related to the AI supply chain. The situation goes beyond a financial move. US restrictions on advanced semiconductors are accelerating the development of Chinese suppliers in areas such as NAND flash, DRAM, and AI hardware, just as global memory demand is surging again.

Two IPOs in a race for memory dominance

YMTC, the leading Chinese producer of NAND flash memory, has reportedly begun its listing process on the mainland A-share market and may submit a formal application by mid-June. The company is benefiting from a very favorable memory cycle driven by AI servers, high-performance storage, data centers, and devices requiring greater capacity.

The report cited by Jefferies notes that YMTC’s revenues exceeded 20 billion yuan in Q1, more than doubling from the previous year. It also accounts for over 10% of global NAND production, with an expected 13% market share in NAND flash worldwide by Q1 2026. If these figures are confirmed, YMTC would no longer be just a local player but a global competitor in a market historically dominated by Samsung, SK hynix, Kioxia, Western Digital, and Micron.

CXMT, on the other hand, operates in DRAM, an even more performance-sensitive memory crucial for AI systems and servers. The report states that the company has already received approval for its IPO application on the Shanghai STAR Market. It aims to raise 29.5 billion yuan (around $4.36 billion), making it the second-largest IPO on the STAR Market after SMIC’s in July 2020.

AI is shifting the memory landscape

The timing of YMTC and CXMT’s IPO plans aligns with the AI investment cycle. Jefferies clearly summarizes this: these IPOs are designed to capitalize on the AI capex boom while semiconductor stocks remain hot. Presumably, the raised capital will be used to expand capacity.

Memory has become a critical bottleneck for AI. Large models require accelerators, but those accelerators depend on fast memory, storage, interconnection, and complete servers. As training and inference clusters grow, so does demand for NAND for storage and DRAM for computing systems.

This pressure isn’t limited to the most advanced segments. The AI boom has pushed prices, displaced production capacity, and reshuffled manufacturer priorities. In DRAM, demand from servers and data centers competes with PCs, mobile devices, and consumer electronics. In NAND, massive volumes generated by training, inference, logs, datasets, and enterprise applications sustain a demand that could favor new entrants if they can scale production with sufficient quality.

In this context, CXMT is the most closely watched Chinese player. The report indicates that the company expects revenues between 110 and 120 billion yuan in H1, with over 600% year-over-year growth. It also forecasts net profits of 66 to 75 billion yuan—a very high figure. This should be viewed cautiously until official filings are examined, but it reflects the sector’s euphoria.

US restrictions accelerate China’s self-sufficiency

The progress of YMTC and CXMT cannot be understood without the geopolitical context. US restrictions on advanced semiconductors, manufacturing equipment, and critical technology access have limited Chinese companies’ ability to purchase certain high-performance chips. But they have also created a strong incentive to develop domestic alternatives.

Jefferies notes that the hottest area of the Chinese stock market in recent months has been the AI hardware supply chain. The opportunity arises precisely from the void created by US restrictions on selling advanced semiconductors to China. In practice, controls haven’t dampened China’s ambition but have instead pushed more capital, political support, and urgency toward domestic suppliers.

This doesn’t mean China can immediately replace all critical components currently controlled by Western or Taiwanese industries. Semiconductor manufacturing is a complex, lengthy supply chain dependent on lithography, materials, equipment, EDA software, packaging, talent, productivity, and capable customers for validation. But YMTC and CXMT exemplify how technology controls are shifting competition further along the supply chain—not just among the highest-end chips.

Memory is especially important because it can expand even when other segments face more restrictions. NAND and DRAM are not mere accessories—they are key infrastructure components. If China can expand competitive production, it could reduce dependence, supply its domestic market, and compete in exports during periods of high demand.

Exports and capital: a message for investors

The report also highlights China’s growing semiconductor exports. According to cited data, exports rose 99.6% YoY in April to $31.1 billion, and increased 83.7% in the first four months of 2026, reaching $103.5 billion. These figures indicate a significant expansion of China’s export capacity in semiconductors, although a detailed analysis of product mix, added value, types, and destinations is needed to assess the actual competitive impact.

For investors, the potential IPOs of YMTC and CXMT send a clear signal: China aims to also compete in NAND and DRAM markets, historically dominated by South Korea, Japan, the US, and Taiwan. Jefferies compares this potential advance to China’s rapid rise in electric vehicles and batteries, where the country went from aspirant to dominant player in just a few years.

While the analogy has merit as a warning, it shouldn’t be applied automatically. Memory markets are characterized by severe price cycles, massive investments, and high technical barriers. Scaling production doesn’t guarantee sustainable margins, and rapid expansion could lead to overcapacity if demand cools. Yet, the current AI cycle offers Chinese manufacturers a favorable window to raise capital and increase scale.

The threat to global giants isn’t that YMTC and CXMT will displace them overnight. The more gradual risk is that they will gain market share inside China, reduce reliance on foreign suppliers, enter international segments with competitive prices, and force Samsung, SK Hynix, Micron, Kioxia, and Western Digital to respond with increased investment, price adjustments, or technological differentiation.

A technology race no longer limited to the most advanced chips

The examples of YMTC and CXMT show that the US-China technological rivalry is expanding beyond the most advanced nodes, AI GPUs, extreme lithography, and export controls on machinery. Now, competition also involves memory, packaging, storage, intermediate components, and scalable manufacturing capacity.

AI has accelerated this shift. Every data center needs many types of chips—not just the main accelerator. If China can’t normally access some foreign components, it has additional incentives to develop alternatives along the whole supply chain. The IPOs of YMTC and CXMT may provide resources to expand factories, improve processes, and increase visibility with customers and investors.

For the West, this is an uncomfortable insight. Export controls might limit access to advanced technology but can also strengthen the industrial resolve of the targeted country. In memory—where AI-driven demand and favorable prices are emerging—that reaction is becoming clearer.

The next phase won’t be solely about who makes the most sophisticated chip but also about who controls memory, who can produce at scale, who funds new plants, and who can embed their components into the infrastructure powering AI. YMTC and CXMT aim to be part of China’s strategic response.

FAQs

What are YMTC and CXMT?

YMTC is China’s leading NAND flash memory manufacturer. CXMT is China’s leading DRAM memory producer. Both are gaining visibility due to growing memory demand linked to AI.

Why are they preparing IPOs now?

Jefferies states these IPOs aim to leverage strong investor interest in the AI supply chain and raise capital to expand manufacturing capacity.

How important is memory for AI?

AI requires memory and storage for training models, inference, data movement, and supporting large data centers. NAND and DRAM are fundamental components of this infrastructure.

Can YMTC and CXMT compete with Samsung or Micron?

They are already scaling up, but sustained competition requires capacity, quality, performance, global clients, and resilience to price cycles. Their progress increases pressure on current leaders but doesn’t imply immediate displacement.