Global demand for artificial intelligence servers continues to generate rapid growth for high bandwidth memory, advanced DDR5 DRAM, and high capacity NAND flash memory. According to a Sinolink Securities research report published by Sina Finance, the 2 largest memory chip manufacturers in China are executing major capacity expansions. ChangXin Memory Technologies and Yangtze Memory Technologies Corporation plan to spend a combined total of up to 63,000,000,000 Renminbi on semiconductor manufacturing equipment to secure their positions in the global supply chain.
The rise of artificial intelligence workloads requires immense computational performance, making high bandwidth memory a critical companion component for hardware accelerators. Simultaneously, the expansion of enterprise data centers is driving a parallel demand for high capacity solid state storage. To keep pace with these market shifts, international leaders Samsung Electronics, SK Hynix, and Micron Technology are also increasing their capital expenditures. The International Semiconductor Industry Association projects that the global semiconductor equipment market will grow from $116,600,000,000 in 2024 to $155,600,000,000 by 2027.
ChangXin Memory Technologies is steadily increasing its DRAM production capacity. The company aims to achieve a monthly output of 280,000 to 290,000 wafers by 2025, with plans to add an additional 50,000 to 60,000 wafers of monthly capacity in 2026. To support this massive scaling effort, the manufacturer has budgeted between 35,000,000,000 and 43,000,000,000 Renminbi for equipment procurement, focusing primarily on wafer fabrication systems and advanced process tools.
This aggressive scaling is part of a broader push toward technological self sufficiency. Industry estimates indicate that every 10,000 wafers of monthly capacity requires an equipment investment of roughly 7,000,000,000 Renminbi. As the company works toward a long term target of 800,000 wafers per month, the total capital expenditure required is projected to reach hundreds of billions of Renminbi.
Yangtze Memory Technologies Corporation is focusing on high layer count NAND flash memory production. The company currently operates 2 wafer fabrication plants in Wuhan with a combined monthly output of approximately 150,000 wafers. The 3 phase of its expansion project has transitioned to the equipment installation and calibration phase, with volume production scheduled to begin in the second half of 2026. Once this project achieves full capacity, monthly wafer output is expected to surpass 170,000 units, backed by an equipment purchasing budget of 20,000,000,000 Renminbi.
This coordinated expansion by the 2 major domestic chipmakers is expected to create substantial opportunities for the local semiconductor equipment supply chain. The domestic procurement rate for semiconductor equipment in China currently stands at approximately 23.2%. Analysts estimate that the purchasing activities of ChangXin Memory Technologies alone in 2026 will generate nearly 10,000,000,000 Renminbi in new business for local equipment suppliers, accelerating the adoption of domestically manufactured tools.
