There are a few exceptions to the general rule that Chinese chipmakers find it difficult to successfully compete with established competitors. The most well-known manufacturer of 3D NAND memory is YMTC (Yangtze Memory Technology Co.), which effectively competes with products from reputable manufacturers. But according to The New York Times, YMTC gained assistance from an unlikely ally, Apple, to become competitive.
According to the NYT piece, which cites three persons with knowledge of the situation, Apple helped YMTC hire experts from reputable Western corporations to increase its yields and productivity. Both Apple and YMTC have yet to confirm or deny the reports, even though the California-based consumer electronics giant is well known for assisting its manufacturing partners in expanding their businesses.
The 3D NAND devices from YMTC make use of their proprietary Xtacking architecture. This is made up of two distinct wafers that are joined together to create extremely dense and extremely quick flash memory components, which can power the greatest SSDs.
With Stacking, the most effective 3D NAND process technique that YMTC can build is employed to produce NAND memory arrays on a single wafer.
The company’s most effective logic process technique is then used to create various peripheral logic on a second wafer. The resulting NAND can combine ultra-dense memory arrays with a quick interface to provide the best of both worlds: memory arrays and logic coupled utilizing metal TSVs (through silicon vias).
It is more difficult for YMTC’s competitors to push their interface speeds to the maximum because they manufacture memory arrays and peripheral circuitry on the same wafer. Client-grade PCIe 5.0 x4 SSD performance is consequently limited.
It is more difficult to manufacture memory using conventional techniques used by Kioxia and Western Digital, Samsung, SK Hynix, and Micron than it is to manufacture 3D NAND the way YMTC does. According to media sources, YMTC’s 3D NAND had low yields and a lengthy ramp-up; hence, it appears that Apple assisted the Chinese companies in hiring experts from respected manufacturers to address these problems.
Apple, which utilizes 3D NAND in the great majority of its products, should diversify its supply to benefit from lower prices from different suppliers. By assisting YMTC to increase manufacturing, more 3D NAND products will be available at more affordable costs. Meanwhile, it appears that Apple no longer plans to employ YMTC’s 3D NAND, even for its devices intended to be sold in China, as a result of the U.S. administration’s strong penalties against the Chinese semiconductor and supercomputer sectors.
After being added to the Unverified List by the U.S. Department of Commerce in early October, YMTC gained significant public recognition. Entities whose bona fides (end users) could not be “satisfactorily recognized for reasons without the U.S. Government’s control” are included in the U.S. DoC’s UVL. The DoC may add the company to its list of entities if YMTC is unable to demonstrate to it within 60 days of inclusion in the list that its memory is not utilized by the Chinese military or security forces. To do so, American businesses would have to get a unique export license before they could sell their goods to YMTC.
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