Global Third! Chinese Firm YMTC Surpasses Micron and Kioxia in NAND Shipments – Analysts: Gap Could Widen by 2027–2028

Latest data shows that amid growing AI adoption boosting memory chip demand, China's Yangtze Memory Technology (YMTC) has entered the top three globally in NAND flash memory shipments and ranks fourth in the larger DRAM memory chip market.

According to the latest figures released Wednesday (12th) by market research firm Counterpoint, YMTC is rapidly gaining market share in the critical NAND chip segment. In Q2 2024, YMTC ranked third globally in NAND shipments, trailing only South Korea's Samsung and SK Hynix, surpassing both U.S.-based Micron and Japan's Kioxia.

This ranking applies specifically to the NAND flash memory market. NAND business accounts for approximately one-quarter of Micron's revenue. NAND chips retain data after power loss but have slower read/write speeds compared to DRAM. In contrast, DRAM, which offers faster operation speeds and is significantly more expensive, contributes about 75% of Micron's revenue.

Data indicates that YMTC captured a 14% market share to claim third place. Regarding this, MS Hwang, Research Director at Counterpoint, noted that a year ago, YMTC had narrowly led Kioxia, but was subsequently overtaken again in the following months.

Hwang said: "We expect YMTC to further widen the gap between 2027 and 2028. From this perspective, achieving third place this quarter will profoundly change the industry's competitive landscape."

He also pointed out that memory manufacturers need at least a 15% market share to raise funds and finance capital expenditures for long-term development.

Following the major listing of CXMT, a DRAM-focused firm, last month, YMTC is now preparing to enter China's capital markets.

Additionally, according to another report published earlier this month by Counterpoint, CXMT held a 7% share of the global DRAM market in Q2 2024, ranking fourth behind Micron, SK Hynix, and Samsung.

Counterpoint data shows that in Q1 2024, both the DRAM and NAND markets achieved record-high sales, reaching nearly $100 billion and $46 billion respectively.

Counterpoint also noted that while YMTC's shipment volume has grown, its NAND chip revenue still lags behind Micron and Kioxia. Currently, YMTC's products are primarily targeted at the consumer market rather than data centers.

The firm predicts that by the end of 2026, data center demand will absorb half of the world's NAND flash memory production capacity.

Earlier this week, South Korean media reported that SK Hynix has resumed investment in its Dalian factory in coastal China after a four-year hiatus, aiming to expand NAND production capacity.