China's premier memory-maker YMTC struggles amid chokehold of US sanctions — outdated chipmaking tools and lack of new tools have hampered production and development of new tech

China's memory-maker YMTC is struggling to expand production capacity due to U.S. export restrictions on advanced chipmaking tools, causing its market share to drop below 5% in Q2 2025. Despite developing cutting-edge technologies like Xtacking 4 and hybrid bonding, YMTC can't grow its fabs due to sanctions. The company's progress faltered after U.S. export restrictions on wafer fab equipment, hindering its ability to increase manufacturing capacity. While YMTC continues R&D on 5th and 6th Generation 3D NAND devices, the lack of new tools and outdated equipment are limiting its options and impacting competitiveness against industry rivals.