[News] YMTC Deepens Supplier Ties as 17 IC Firms Commit RMB 6B in Wuhan, With AMEC Among Key Players
As Chinese NAND giant YMTC’s IPO moves closer to formal acceptance, the company is quietly deepening its local semiconductor supply chain around its home base in Wuhan’s Optics Valley. According to Star Market Daily, 17 IC companies recently signed agreements in Wuhan involving more than RMB 6 billion in total investment, led by local semiconductor equipment maker Advanced Micro-Fabrication Equipment Inc. (AMEC).
The deals are part of the “Wutong Tree Plan,” which aims to build a world-class memory-computing integrated industrial base in a 60-square-kilometer area centered on YMTC, with a 4.5-kilometer radius, Star Market Daily adds. The initiative is jointly backed by Wuhan’s Donghu High-tech Development Zone and leading companies including YMTC, whose Chairman Chen Nanxiang attended the signing ceremony, according to the report.
Key Suppliers in Focus: AMEC, Skyverse and More
Among the major participants, the report highlights one of China’s chipmaking tool champion AMEC, which has developed 54 high-end tools across etching, thin-film deposition, metrology, inspection, and CMP/wet processing.
The company is now setting up its Central China R&D headquarters at Optics Valley’s Memory & Computing Innovation Park, while its Wuhan subsidiary, registered on July 28, is expected to begin operations early next year, according to the report.
The expansion comes as YMTC prepares for its next phase of investment. Reuters reported in April that it plans to bring a third Wuhan fab online by the end of 2026. YMTC has also deepened ties with domestic equipment suppliers such as AMEC since the U.S. Commerce Department added the company to its Entity List in December 2022, Reuters added.
On the other hand, Star Market Daily points out that semiconductor quality control equipment company Skyverse Technology is also another key participant of the Wuhan initiative. Skyverse’s product portfolio reportedly covers over 70% of the domestic addressable market, with cumulative shipments exceeding 1,500 units.
The Wuhan cluster also extends beyond equipment makers to critical component suppliers. Jiangsu Shenzhou Semi Technology, known for its RF power systems for etch and deposition tools, is among the latest participants, according to STAR Market Daily. Its products are reportedly used in volume by major equipment makers including AMEC, Piotech and Naura for advanced logic and memory production.
Beyond individual suppliers, the Wuhan initiative reflects a broader push to build out China’s memory ecosystem. Memory has been a key focus of national industrial policy, with cumulative state-backed investment in the sector exceeding RMB 30 billion over the past decade, according to STAR Market Daily.
Star Market Daily reports that Optics Valley is now home to more than 300 IC companies, with total industry output surging from about RMB 5 billion in 2014 to over RMB 100 billion in 2025. The region, per the report, is targeting a world-class memory-computing integrated industrial base by 2030.
YMTC’s IPO Draws Closer
According to the Financial Times, Wuhan-based YMTC last week filed with the Shanghai Stock Exchange for a RMB 33 billion ($5 billion) IPO, with proceeds primarily earmarked for facility upgrades and advanced R&D. Citing market analysts, Xingtu Financial Research Institute, via JRJ.com, expects the NAND maker to go public in the fourth quarter of 2026 or the first quarter of 2027.
YMTC also posted a blockbuster Q1. The company generated RMB 47.042 billion in revenue and RMB 33.379 billion in net profit attributable to shareholders of the parent, surpassing CXMT’s RMB 24.76 billion for the same period, according to JRJ. The results underscore YMTC’s earnings strength as it expands in the NAND flash market, the report adds.
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(Photo credit: YMTC)
